ANNUAL
REPORT
2020–21
NSW EDUCATION STANDARDS AUTHORITY
NESA Annual Report 2020–21 2
Letter of submission to the Minister
The Hon Sarah Mitchell MLC
Minister for Education and Early Childhood Learning
Parliament House
Macquarie Street
Sydney NSW 2000
Dear
Minister
We are pleased to present the annual report of the NSW Education Standards Authority for the year
ending 30 June 2021, for your presentation to the NSW Parliament.
The report highlights the activities and achievements of the NSW Education Standards Authority over the
reporting year. It has been prepared in accordance with the Annual Reports (Statutory Bodies) Act 1984
and the Public Finance and Audit Act 1983.
In addition, the report contains NESA’s audited financial statements for the financial year ended 30 June
2021.
Chief Exe
cutive Officer
NSW Education Standards Authority
29 October 2021
Chairpers
on
Governing Board of the NSW Education Standards Authority
29 October 2021
NESA Annual Report 2020–21 3
Contents
Letter of submission to the Minister ............................................................................................ 2
Chairperson’s message ................................................................................................................ 5
Chief Executive Officer’s message .............................................................................................. 7
1.1 About NESA ............................................................................................................................ 8
1.2 Organisational structure ...................................................................................................... 17
1.3 NESA’s response to the COVID-19 pandemic .................................................................... 19
1.4 Delivering on the Minister’s 2021 Statement of Expectations ............................................ 22
1.5 NESA’s Commitment to Aboriginal Education .................................................................... 25
2.1 Teaching standards ............................................................................................................... 29
2.2 Key achievements in Teaching Standards ......................................................................... 30
3.1 School registration and accreditation .................................................................................. 37
4.1 NSW Curriculum Achievements ........................................................................................... 46
5.1 Student assessment .............................................................................................................. 49
5.2 Key achievements in student assessment .......................................................................... 50
6.1 Stakeholder engagement ...................................................................................................... 54
7.1 Managing human resources ................................................................................................. 56
8.1 Audit and Financial statements ............................................................................................ 62
9.1 Financial management .......................................................................................................... 65
List of Appendices ...................................................................................................................... 69
Appendix A – NESA charter ........................................................................................................ 70
Appendix B – NESA Board ......................................................................................................... 73
Appendix C – Committees of the NESA Board .......................................................................... 77
Appendix D – Obligations under the Government Information (Public Access) Act 2009 ..... 79
Appendix E – Statutory disclosure requirements ..................................................................... 83
Appendix F – NSW Aboriginal Education Consultative Group Incorporated .......................... 84
Appendix G – Knowledge management and information security........................................... 85
Appendix H – Financial statements ........................................................................................... 87
NESA Annual Report 2020–21 4
Acronyms and abbreviations ..................................................................................................... 89
List of tables and figures .......................................................................................................... 122
Compliance checklist ................................................................................................................ 124
Index ........................................................................................................................................... 126
NESA Annual Report 2020–21 5
Chairperson’s message
I am pleased to present the NSW Education Standards Authority (NESA) 2020-21 Annual Report.
The past 12 months have been extremely challenging as we navigate our way through the evolving
COVID-19 pandemic. The education sector and the professionals that uphold it, have overcome
incredible challenges. In a real sense, teachers have held their local communities together.
NESA has worked hard to support NSW schools, students and families through these uncertainties. It
has not been easy. NESA’s close partnership with each of the NSW school sectors and other key
stakeholders has helped to make well-informed decisions at the right time.
At the beginning of 2021, the Board farewelled two valued members - Mr Mark Scott, previously the
Secretary of the NSW Department of Education and Mr Mark Northam, Secretary of the NSW/ACT
Independent Education Union. My sincere thanks goes to them both for their contributions over the
years. I have learned from both of them.
The NESA COVID Response Committee, which I also Chair, met frequently over the course of the 2020-
21 reporting period as we continued to respond to the evolving COVID situation. The Committee
includes representatives from all three school sectors. Together we have addressed developing and
urgent issues related to the COVID-19 pandemic and considered the impact of COVID-19 on
assessments, curriculum requirements, accreditation and registration.
At the centre of these decisions has been the health and wellbeing of school communities.
NESA announced a number of changes to the HSC in 2020. We believe that that provided a fair,
equitable and safe opportunity for students to show what they knew and receive their HSC.
I extend my deepest gratitude to the hard work, dedication and professionalism of all NSW teachers and
school staff who delivered these changes and responded to a changing array of restrictions. The
teaching community helped their students to learn from home and ensured the delivery and continuity of
education in NSW. The multifarious challenges of the pandemic have shown just how flexible and
resilient schools can be in responding to crises.
My thanks also go to the parents and carers who have supported their children, some of whom are
teachers themselves and many of whom were also working from home.
I am also pleased to note the significant progress made on NSW Curriculum Reform as we work towards
implementation from 2022. In 2020-21 we received thoughtful ideas from more than 743 respondents.
Meanwhile, the Teacher Expert Network began user testing the content, with some very encouraging
feedback. Consultation will continue in the 2021-22 reporting period.
During the second half of 2020 the NESA Board also explored options to revise its own governance
structure. This review process was designed to ensure that the Board can deliver on the NSW
Government’s major reform expectations, and maintain public confidence in NESA. Strong governance
practice is critical for the NESA Board, and the committee governance structures should support the
Board to oversee the timely delivery of initiatives each year. The changes made will help to ensure that
ambition is met.
This reform has involved the reconceptualisation of two regulatory decision-making committees which
now focus on matters related to the Curriculum and Credentials and School Registration respectively.
The new structure also includes an advisory committee and two advisory forums reporting to the NESA
Board.
These adjustments to the governance structure come with an unequivocal commitment to substantial,
structured, and sustained stakeholder engagement by the NESA agency. A range of committees and
NESA Annual Report 2020–21 6
forums have met as required in the 2020-21 reporting year, and further information will be provided in the
next Annual Report.
I pay tribute to the professional expertise and commitment of those who work at NESA. Led by CEO,
Paul Martin, they have allowed us to undertake business as usual, respond to COVID-19 and drive
reform. For them too, it’s been a tough 12 months.
Finally, I thank sincerely my colleagues on the NESA Board and its Committees. Their expertise,
dedication and steady hand have been invaluable as we navigated the challenges of 2020-2021.
Professor
Peter Shergold AC
Chairperson
NESA Board
NESA Annual Report 2020–21 7
Chief Executive Officer’s message
The 2020-2021 reporting year has been another challenging period for NSW students, teachers,
schools, parents and carers. Throughout the evolving COVID situation, the spotlight has been on the
education community and how we can continue to support students to ensure continuity of learning and
the best education outcomes possible.
My thanks go to teachers and school staff for their flexibility, dedication and resilience, for keeping
students learning and supporting their wellbeing during this difficult period.
In 2020, HSC teachers not only ensured their students continued to learn and study, but provided marks
for a number of HSC major projects.
Throughout 2020-21 period work has continued on major NSW curriculum reforms. The draft English
and mathematics K to 2 syllabuses were released for a first round of public consultation in March 2021.
A second round of public consultation, along with workshops, and targeted meetings with education
stakeholders will continue through the second half of 2021.
A substantial recruitment effort has begun and is ongoing, to ensure that NESA has access to the
expertise required to deliver the curriculum reforms.
Additionally, a review and evaluation of all existing K-12 syllabuses by NESA Curriculum Inspectors has
commenced.
A great deal of work has gone into developing new criteria and processes for assuring the quality of
teacher professional development following the Minister’s announcement of new requirements in
November 2020.
The new professional development requirements aim to ensure that teachers have access to the best
professional development courses possible to support their ongoing development and learning in areas
that are priorities for all teachers across NSW.
In 2020-21 NESA also facilitated the successful delivery of NAPLAN testing in May 2021. These
NAPLAN results are the first in two years, following the cancellation of NAPLAN in 2020 as a result of
COVID-19. Almost 400,000 students in NSW sat NAPLAN in 2021 and NESA has continued to transition
all schools to completing NAPLAN online in 2022. This transition is expected to be complete in 2022 and
will be discussed in the 2021-22 Annual Report.
In recognition of all the wonderful work going on behind the scenes, despite the disruptions caused by
COVID-19, I would like to express my sincere thanks and appreciation to the NSW education
community.
Finally, I want to acknowledge the NESA Board, my executive team and NESA colleagues for their
continued dedication, collaboration and hard work to improve the education outcomes of all NSW
students.
Paul
Martin
Chief Executive Officer
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NESA Annual Report 2020–21 11
Professor Peter Shergold AC (Chairperson)
BA, MA, PhD, Hon. Litt.D., UNSW
Peter is an Australian academic, company director, and former public servant.
Peter has been the Chancellor of Western Sydney University since 2011. He has
chaired two recent Government reviews into education: Looking to the Future,
June 2020 and (with David Gonski) In the Same Sentence, March 2021.
Between February 2003 and February 2008, he was the Secretary of the
Department of the Prime Minister and Cabinet, and as such was the most senior
official in the Australian Public Service. He was elected a Fellow of the Academy
of Social Sciences (FASSA) in Australia in 2005 and Royal Society of New South
Wales (FRSN) in 2016.
In 1996, Peter was appointed a Member of the Order of Australia. He was
awarded a Companion of the Order in 2007 for service to the community as a
significant leader of changes and innovation in the public sector, particularly
through the development and implementation of a whole-of-government
approach to policy development and program delivery. Peter was a recipient of
the Centenary Medal in 2001.
Peter is also the Chair of the NESA Board COVID-19 Response Committee.
Ms Jenny Allum
BSc, GDipEd, MA, DLitt
Jenny Allum is the Head of SCEGGS Darlinghurst, a position she has held since
1996. From 1991–1995 she was Manager of the Curriculum Branch of the Board
of Studies NSW, responsible for the development of all school curriculum in the
State from Kindergarten to Year 12.
Jenny was Chair of the NSW/ACT Branch of the Association of Heads of
Independent Schools from 2004 – 2005, and before that chaired the Academic
Committee of that Association. Jenny is currently its co-Chair.
She is a Fellow of the Australian College of Educators. In 2011, she was
awarded an honorary Doctor of Letters from the University of NSW.
Jenny served on the NESA Board Curriculum Committee from 2017 to 2019, and
Chair of the Assessment Committee in 2020.
Jenny is a member of the NESA Board COVID-19 Response Committee.
Mr Denis Fitzgerald
BA(Hons), DipEd
Denis Fitzgerald has taught in a range of public schools across NSW as a
classroom teacher and in a variety of promotions positions. He was a foundation
member of the NSW Board of Secondary Education, a member of the
Curriculum Corporation of Australia and a foundation member of the Board of
Studies NSW.
NESA Annual Report 2020–21 12
Denis has also been the President of the NSW Teachers Federation, the
Federal President of the Australian Education Union as well as a writer and
speaker on educational and social issues.
Denis was Director of Equity and Aboriginal Education in the NSW Department
of Education before returning to teaching. He has researched and been
published across a range of education issues. He was also the foundation
Director of the Centre for Professional Learning and the editor of the Journal of
Professional Learning.
Denis is Chair of NESA Board Curriculum and Credentials Committee and is
also a member of the NESA Board COVID-19 Response Committee.
Ms Katherine Grace
BA
(Hons), LLB(Hons), MPP
Katherine Grace is the General Counsel, Company Secretary and a member of
the Executive Committee for Stockland Group, a top 30 ASX listed entity.
In addition to her business role at Stockland, Ms Grace is also involved in
inclusive leadership, education and gender equity programs. Ms Grace is a
member of the Australian Institute of Company Directors, Chief Executive
Women and the Law Society of NSW.
Ms Jude Hayman
BEd
Jude Hayman is the recently appointed Executive Principal, Connected
Communities at Nowra East Public School. Prior to this appointment Jude was
Principal of Griffith Public School in NSW’s Riverina region for 12 years. This
follows a year as Principal at Kalinda School for Specific Purposes, two years as
Principal of Tharbogang Public School, and Assistant and Relieving Principal
appointments at a series of rural and regional NSW government primary schools
from 2003 to 2009.
In 2013, Jude was named one of two inaugural winners of the Harvard Club of
Australia Education Scholarship. This led her to complete a post-graduate
professional short course at Harvard University. Jude recently participated in a
bespoke course at University College London as a NSW DoE scholarship
recipient. Jude is currently undertaking a Masters of Educational Leadership at
the University of Wollongong.
Jude is an active member of the NSW Primary Principals’ Association, she held
the position of State Secretary for two years and is currently a State Vice-
President.
Jude is Chair of the NESA Disability Education Forum.
NESA Annual Report 2020–21 13
Mr Gary Johnson
BA, Dip Ed
Gary Johnson is the Principal of Cherrybrook High School, a purpose-built
technology high school in Sydney’s northwest. Under Gary’s leadership,
Cherrybrook High School has developed a reputation as one of the most
innovative and successful comprehensive high schools in the state.
Gary was appointed Principal in 2003. Before this, Gary was Principal of Jamison
High School and Deputy Principal, Asquith Boys High School. Gary was an HSC
marker and HSC Marking Supervisor from 1992 to 1999.
Gary has served on the Curriculum Committee of the NESA Board from 2017 to
2020 From 2010 to 2016, Gary sat on the former Board of Studies, Teaching and
Educational Standards as a nominee of the Minister representing secondary
principals.
He is a life member of the NSW Secondary Principals’ Council.
Ms Christine Legg
BEd(EC), DipT(ECE)
Christine Legg was appointed to her role as CEO of KU Children’s Services in
April 2011. Chris is an experienced early childhood professional who began her
teaching career in South Australia, before moving back to Sydney.
During her career, Chris has worked in a variety of services, including long day
care and preschool, and has held a number of positions within KU including
Teacher, Director, Consultant, Trainer and several management roles.
Chris is currently a member of the NSW Early Childhood Education Advisory
Group and the Australian Government Early Childhood Education and Care
Reference Group. In addition, Chris is a member of the Macquarie University
Department of Education Studies Advisory Board and the University of Notre
Dame School of Education Advisory Board.
Chris has been an active member of Early Childhood Australia (ECA) at both the
NSW and National level and is currently the National President of ECA.
Throughout her career, Chris has been actively engaged in promoting the value
of early childhood education, the rights of children, and improving the status and
standing of early childhood education as a profession.
Mr Paul Martin
BA(Hons), DipEd
Paul Martin is the Chief Executive Officer (CEO) of NESA. Paul was appointed as
NESA CEO in December 2019, after acting in the role since February 2019. He
is an ex-officio member of the NESA Board.
NESA Annual Report 2020–21 14
Before being appointed as CEO, Paul was the Executive Director, Quality
Teaching at NESA and before that, the Manager of Professional Learning and
Initial Teacher Education at the former NSW Institute of Teachers (NSWIT).
Paul played a key role in the implementation of the NSW Government’s Great
Teaching, Inspired Learning initiative with both NESA and the NSWIT. Paul has
also been a policy advisor for NSW and Australian Governments after starting his
career as an English and History teacher in NSW.
Paul is a member of the NESA Board COVID-19 Response Committee.
Mr Dallas McInerney
BA, LLB, MPP
Dallas McInerney was appointed Chief Executive Officer of Catholic Schools
NSW (CSNSW) in August 2017. CSNSW is the representative body of the state’s
almost 600 Catholic schools and their owners, and is also the system authority
for the approximately 550 NSW Catholic diocesan schools, with responsibility for
their funding, distribution, compliance and governance.
Previously, Dallas spent two decades in financial regulation and public policy
across the government and private sectors.
Dallas holds degrees in Arts and Law and is a Master of Public Policy. He is a
graduate of the University of Sydney and the University of New England and
completed much of his schooling in southern Sydney and central western NSW.
Dallas is a member of the NESA Board COVID-19 Response Committee.
Dr Geoffrey Newcombe AM
BSc, DipEd, MEdAdmin, PhD, GAICD
Dr Geoff Newcombe was appointed Chief Executive of the Association of
Independent Schools of NSW in 2005. He has had extensive experience in
school management and finance having held positions of Head and Business
Manager in a number of Independent Schools.
Dr Newcombe has lectured in the Master of Education program at the University
of New South Wales and was appointed Adjunct Associate Professor in the
School of Education at the University.
He is Deputy Chair of the Non-Government Schools Superannuation Fund (NGS
Super) and chairs the Fund’s HR, Remuneration and Governance Committee,
serves on Investment Committee.
In 2009 he was appointed to the Board of the Australian Institute of Teaching and
School Leadership (AITSL) and has served on a number of committees including
Governance, Finance and Audit and Risk. He retired from the Board in June
2018.
Dr Newcombe was appointed to the NSW Government’s Study NSW
International Education Advisory Board in 2014 and to the Board of the NSW
Education Standards Authority (NESA) in January 2017. He also serves on the
Finance Committee of NESA.
NESA Annual Report 2020–21 15
Dr Newcombe is currently a member of the Board of Dymocks Children’s
Charities and a member of the Audit and Risk Committee of the Department of
Education, Western Australia.
In December 2018 he was appointed to the Board of the Australian Council for
Educational Research (ACER) and now chairs the Finance and Audit Committee.
Dr Newcombe was appointed to the Technical and Further Education
Commission (TAFE) Board in July 2021.
In June 2017, he was appointed a Member of the Order of Australia (AM) for
service to education and educational organisations, in particular the Independent
School Sector.
In November 2019, he received the NSW Sir Harold Wyndham Medal, the
highest award given by the Australian College of Educators NSW.
Geoff is a member of the NESA Board COVD-19 Response Committee
Mr Mark Northam
BA, DipEd, MEdStud
Mark Northam is the Secretary of the NSW/ACT Independent Education Union
(IEU).
He began his career in education as an English and History teacher at Coolah
Central School. Between 1982 and 2000, he taught at Campbelltown High
School, St Anne’s High School Adamstown, and held the position of Assistant
Principal at St Clare’s High School Taree and Acting Assistant Principal at St
Francis Xavier’s Hamilton.
Mark chaired the Special Education Committee of the NESA Board from 2017 to
2019. Mark resigned his position on the Board in January 2021.
Mr Mark Scott AO
BA, DipEd, MA(Syd), MPubAdmin (Harv)
Mark Scott was Secretary of the NSW Department of Education after a decade
as Managing Director of the ABC. Mr Scott was formerly a teacher at St Andrews’
Cathedral School before moving to senior roles working for two education
ministers.
Following completion of a Masters in Public Administration at Harvard University,
Mr Scott joined Fairfax Media as a journalist, rising to senior editorial and
executive roles before moving to the ABC.
Mark was a member of the NESA Board COVID-19 Response Committee. Mark
resigned his position on the Board in February 2021.
NESA Annual Report 2020–21 16
Mr Nathan Towney
BTeach, BhlthPhyEd
Nathan is a proud Wiradjuri man from Wellington in NSW and an education
leader. He holds a Bachelor of Teaching and a Bachelor of Health and Physical
Education from The University of Newcastle.
Nathan was appointed as the Pro Vice-Chancellor Indigenous, Strategy and
Leadership in 2019, following a long career in NSW schools. Nathan held various
teaching and leadership positions in NSW including, leading the Aboriginal
Education team in South Western Sydney and a four-year tenure as the Principal
of Newcastle High School.
Nathan is a member of the Australian Rugby League Indigenous Council and the
Deputy Chair of the NSW Vice-Chancellor’s Indigenous Committee.
Nathan is Chair of the NESA Aboriginal Education Forum.
Dr Anne Wenham
BA, DipEd, MEd, PhD, MTheo
Dr Anne Wenham resigned from her position as Head of College of St
Stanislaus’ College, Bathurst at the conclusion of 2019. Dr Wenham was
appointed in 2012 as the first woman ever to occupy the role.
In 2006, Anne was appointed as Director of Catholic Schools for the Diocese of
Lismore (following a one year period as Assistant Director), following periods as
the Principal of St Columba’s High School, Springwood and Caroline Chisholm
College, Glenmore Park.
Before this, she was an Assistant Principal in two schools in the Sydney
Archdiocese before taking two Principal appointments with the Diocese of
Parramatta.
Dr Wenham currently holds positions on the Board of NESA and the Board of St
Patrick’s College Strathfield and has recently been appointed as Special Adviser
within Catholic Schools NSW on a casual basis, to assist with responses to
COVID-19.
Anne is Chair of the NESA Board Registration and Accreditation Committee.
NESA Annual Report 2020–21 17
1.2 Organisational structure
NESA is supported by the NESA Staff Agency, which is established under Schedule 1 Part 3 of the
Government Sector Employment Act 2013.
NESA’s Executive structure at 30 June 2020 is at Figure 1.1. A detailed description of NESA’s functions
is available on the NESA website.
Figure 1.1 NSW Education Standards Authority organisational structure (at 30 June 2021)
NESA Annual Report 2020–21 18
NESA’s Executive Leadership Team
Table 1.1 Members of the NSW Education Standards Authority Executive during the 2020–21
reporting year
Name Position Qualifications
Mr Paul Martin Chief Executive Officer BA(Hons), DipEd
Mr Paul Daniell Executive Director, Strategy and
Capability
BA, PGDipArts, MSc
Dr Sofia Kesidou Executive Director, Curriculum and
Assessment Standards
BSc(Hons), PhD
Ms Lyn Kirkby Executive Director, School and
Teaching Standards
BA, DipEd, MEd(Lead)
NESA Annual Report 2020–21 19
1.3 NESA’s response to the COVID-19 pandemic
Figure 1.2 Key statistics relating to NESA’s response to the COVID-19 pandemic (in 2020–21)
Key statistics to 30 June 2021
7 COVID-19 Response Committee meetings
2 million+ emails (60+ NESA NEWS editions)
delivering updated information to subscribers
250+ referrals to Reachout from COVID-19
section of NESA website
More than 230,000 views of COVID-19 pages
on the NESA website
Total reach of #StayHealthyHSC campaign
reach across social channels: 10 million+
impressions
Over 1,800 mentions on social media (using
NESA’s COVID-19 hashtags)
NESA Annual Report 2020–21 20
Support for students, parents, teachers, and schools
Throughout the 2020-21 reporting year, NESA continued its dedicated COVID-19 phone and email
support lines. NESA managed enquiries from students, parents, teachers, and schools on a range of
issues about educational continuity in NSW during the COVID-19 pandemic.
Students, teachers, schools, and parents will continue to be able to use these support lines for as long
as necessary into the 2021–22 reporting year.
The COVID-19 Response Committee
The NSW Minister for Education and Early Childhood Learning approved the NESA Board’s
establishment of a COVID-19 Response Committee
in the previous reporting year.
In 2020-21, NESA’s COVID-19 Response Committee continued to monitor and address developing and
urgent COVID-19 issues as it related to the continuity of education in NSW.
The COVID-19 Response Committee met seven times during the reporting year to address issues
related to COVID-19 and its impact on NESA’s work. All decisions taken by the COVID-19 Response
Committee aim to protect the health and safety of students, parents and teachers and ensure the
continuity of education through COVID-19.
During the reporting period, the COVID-19 Response Committee comprised of:
Professor Peter Shergold, Chair, NESA Board
Mark Scott, Secretary, NSW Department of Education (July 2020-February 2021)
Georgina Harrisson, Secretary, NSW Department of Education (March 2021 onwards)
Dallas McInerney, CEO, Catholic Schools NSW
Dr Geoff Newcombe, CEO, Association of Independent Schools NSW
Jenny Allum, NESA Board member
Denis Fitzgerald, NESA Board member
Paul Martin, CEO, NESA
The COVID-19 Response Committee make COVID-19 decisions in line with published advice from the
Australian Health Protection Principal Committee (AHPPC), which is supported by NSW Health.
The COVID-19 Response Committee made a series of decisions about the 2020 NSW Higher School
Certificate and the Kindergarten to Year 10 (K–10) curriculum during the COVID-19 pandemic. Detailed
information about the COVID-19 Response Committee and other NESA decisions and actions
undertaken in response to the pandemic are available on the COVID-19 advice
section of the NESA
website.
#StayHealthyHSC Campaign
In March 2020, the NSW Education Standards Authority identified a need to develop an awareness
campaign to support the health and wellbeing of HSC students, given the emerging impact of COVID-19
across the state. A partnership was formed with ReachOut Australia to provide tips and guidance to help
students Keep Active, Stay Connected and Ask for Help. The communications campaign resonated
immediately with students as over 400 schools adopted the messaging and the ‘call to action’.
The initiative grew further as Catholic Schools NSW and the Association of Independent Schools NSW
became involved. Similarly the Department of Education also provided expertise and resources to
involve social media channels: Tik Tok, Snapchat, Facebook and Instagram.
NESA Annual Report 2020–21 21
By the end of 2020 the #stayhealthyHSC campaign had reached over 10million people across NSW
and Australia. Music group, The Rubens, dedicated a song and artist, Reg Mombassa, created an
artwork for the class of 2020 under the Stay Healthy HSC banner. Many well-known celebrities
contributed video messages of support for HSC students, lifting the profile of the campaign and its
important messaging.
The campaign was relaunched in February 2021 with a centralised support hub to provide assistance to
the 65,000 students preparing for their HSC exams.
More information about the #StayHealthyHSC campaign
is available on the NESA website.
NESA Annual Report 2020–21 22
1.4 Delivering on the Minister’s 2021 Statement of
Expectations
Objective 1: To progress the implementation of priority curriculum reforms.
The Board is to sustain its primary focus on implementing the NSW Government’s Curriculum Reform
program. The Board should ensure delivery of priority reform initiatives.
Progress update
NESA commenced implementation of the NSW Curriculum Reform Program following the release of the
NSW Curriculum Review Final Report and NSW Government Response in mid-2020. To manage the
reform program across the five workstreams and fifteen projects, a program management and
governance framework were established. The framework has been designed to respond to the
complexity of, and the ambitious timeframes for, the reforms.
NESA has progressed each of the key areas of the reform over the past twelve months, including:
Reducing the number of school-developed elective subjects in secondary school. In
November 2020 the NESA Board agreed to withdraw endorsement for Stage 5 School
Developed Board Endorsed Courses (SDBECs), and to introduce strengthened endorsement
criteria for Stage 6 SDBECs from 2021. The only exceptions in Stage 5 will be for languages,
Auslan and Braille. Strengthened criteria have been introduced for Stage 6 SDBEC proposals.
Twenty-seven (27) school-developed elective courses have been discontinued.
Building strong foundations for future learning by 2022 with a new English and Mathematics
curriculum for Kindergarten – Year 2. Draft K–2 English and Mathematics syllabuses were
released for public consultation in 2021. Responses were very positive and over 704 respondents
provided feedback through an online survey.
Strengthening post-school pathways by 2022 with new learning areas for Year 11 and 12 that
clearly link learning to future employment and study options. Engagement and consultation about
the new learning areas was conducted over 2020-21, and is informing the design of options.
More time for teaching by 2022 to reduce the hours teachers spend on compliance
requirements. A review is underway to determine what compliance requirements have the
greatest impact on teacher time. Consultations have been undertaken with key education
stakeholders and analysis will inform future decisions in late 2021.
A new curriculum for 2024 with new syllabuses focused on what is essential to know and do in
early and middle years of schooling, and in senior years key learning areas. A review and
evaluation of all existing syllabuses by NESA Curriculum Inspectors has commenced.
Creating conditions for success by establishing Teacher Expert Networks (TENs). A
network of more than 200 teachers, drawn from the three school sectors, has been established
by NESA to ensure that the new NSW curriculum is implemented in partnership with teachers. In
2021, TENs have provided feedback on the draft K-2 English and Mathematics syllabuses;
compliance impacts on teacher workload; curriculum reform proposals for secondary school; and
the new digital curriculum platform. TENs have also acted as ‘knowledge brokers’ to share
information about the reform in their schools and school community.
Creating conditions for success by developing a new digital format for the NSW
Curriculum. This includes a new Curriculum Management System to support online delivery and
management of new syllabuses, a new website where teachers, parents, students and the
community can access the syllabuses quickly and easily.
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NESA Annual Report 2020–21 25
1.5 NESA’s Commitment to Aboriginal Education
In 2020–21, NESA continued its Commitment to Aboriginal Education, formally developed in partnership
with the NSW Aboriginal Education Consultative Group (AECG) Inc.
The Commitment supports teachers, schools and school sectors to improve educational outcomes for
Aboriginal children and young people. It is based on recognition and respect for Aboriginal and Torres
Strait Islander Culture, and engagement and collaboration with local communities and stakeholders,
including the NSW AECG. It relies on advancing a strengths-based approach for Aboriginal education
and is driven by accountability, reciprocity and planning.
NESA realises its Commitment to Aboriginal Education through a number of initiatives.
Aboriginal Education Forum
In December 2020, the NESA Board determined that the Aboriginal Education Forum be created to
replace the previous Aboriginal Education Committee. This was to better support how NESA provides
opportunities for Aboriginal education stakeholders and experts to engage with each other on topics of
relevance in Aboriginal Education. The Forum considers key community matters and NESA’s strategic
Aboriginal education priorities.
The inaugural meeting of the Forum was held on 8 June 2021 and will occur periodically throughout
each calendar year.
The Forum is chaired by Nathan Towney, NESA Board member, and includes representatives of the
NSW AECG, each education sector, unions and government, including the NSW Department of
Education, Catholic Schools NSW, the Association of Independent Schools NSW, the National
Indigenous Australian Agency, NSW Teachers’ Federation and the Independent Education Union
NSW/ACT. The Forum also includes selected Aboriginal teachers from each sector, NESA’s executives
and key NESA staff.
Aboriginal education in the curriculum
In 2020-21 NESA has continued to develop syllabuses and support material related to:
Aboriginal Studies
Aboriginal Languages
Aboriginal and Torres Strait Islander histories and cultures cross-curriculum content.
Since 2015, NESA has incorporated Aboriginal and Torres Strait Islander histories and cultures in NSW
syllabuses as a cross-curriculum priority. The representation of Aboriginal and Torres Strait Islander
histories and cultures has been improved in more than 60 new or amended syllabuses. NESA has
developed a range of support materials across Kindergarten to Year 12 to support the implementation of
this learning across the curriculum area.
NESA syllabuses and curriculum support material acknowledges the importance of prior learning and
promotes recognition of the diversity of learners, and the importance of equity and inclusiveness.
Aboriginal education will continue to be embedded in NESA’s syllabus development process as part of
NSW Curriculum Reforms in 2021-22.
NESA Annual Report 2020–21 26
Aboriginal Languages
NSW schools can deliver Aboriginal Languages from Kindergarten to Year 12 through the Aboriginal
Languages K–10 Syllabus and the Aboriginal Languages Stage 6 Content Endorsed Course (CEC)
Syllabus.
During Term 4, 2020, NESA conducted consultation on the Aboriginal Languages K–10 Draft Outcomes
and Content. Feedback was collected through an online survey, written submissions and consultation
meetings. In addition to public meetings, targeted consultations were held with Aboriginal and Torres
Strait Islander stakeholders, Aboriginal Language communities and Life Skills educators. All meetings
occurred online in accordance with COVID-19 health and safety advice.
Aboriginal Studies
NSW schools can offer Aboriginal Studies from Years 7 to 12 through the Aboriginal Studies Years 7–10
Syllabus and the Aboriginal Studies Stage 6 Syllabus.
In Term 1 2021, NESA commended implementation of the updated Aboriginal Studies Years 7–10
Syllabus (2020).
The Aboriginal Studies HSC Awards are jointly awarded by the NESA Chairperson and the President,
NSW Aboriginal Education Consultative Group Inc. (AECG) to recognise the achievements of the
highest performing Aboriginal student, and the highest performing non-Aboriginal student in the
Aboriginal Studies HSC course each year. The awards are presented at the NSW AECG Inc. Annual
General Meeting Awards Presentation and Dinner. The presentation event was unable to be held in
2020 due to COVID-19 restrictions. In March 2021, awards for both 2019 HSC and 2020 HSC were
presented.
Reconciliation Action Plan (RAP)
NESA recognises that in order to ensure the education outcomes of Aboriginal and Torres Strait Islander
children and young people, change needs to start from within.
NESA’s Innovate RAP 2019-2021 is a practical framework that drives reconciliation within the NESA
agency and across all of NESA’s work. Its vision is to change the way NESA conducts its work, to
change how NSW supports education and reconciliation.
During the reporting year, NESA’s RAP Champions continued their role in driving reconciliation across
the organisation and overseeing activities to ensure NESA meets its RAP deliverables through
collaboration with key staff across the agency.
As a deliverable in NESA’s RAP, all staff were invited to complete a ‘Workplace RAP barometer’
evaluation survey about their experiences on the agency’s commitment to reconciliation and
reconciliation program. This evaluation was completed in the reporting year in collaboration with
Reconciliation Australia and Polity Research and Consulting. The results will be used in the next
reporting year to help inform NESA’s direction and priorities for its commitment to Aboriginal education
and its reconciliation journey.
Teacher professional development in Aboriginal education
In July 2020, the Minister requested that NESA conduct a review of processes for assuring the quality of
externally run professional development courses for teachers in NSW. The review aimed to ensure
teachers have access to the best professional development courses possible to support their ongoing
development and help them to improve the support and education students receive in the classroom. In
October 2020, the NESA Board endorsed a new Accreditation of Professional Development Courses
NESA Annual Report 2020–21 27
Policy (the PD Policy), setting out requirements for the assessment and accreditation of PD courses for
NSW teachers in identified priority areas.
On advice from the NESA Board, the Minister identified Aboriginal education and supporting Aboriginal
students/children as one of four priority areas in which all teachers across NSW need to complete
professional development.
Under the new requirements implemented from 2021, teachers in NSW need to complete professional
development in each of the four identified priority areas, including Aboriginal education and supporting
Aboriginal students/children, to maintain their accreditation.
Aboriginal procurement
In 2020–21, aligning with NESA’s RAP, NESA engaged several Aboriginal-owned and Supply Nation
certified businesses to support Aboriginal economic participation in NSW and the NSW Government’s
Aboriginal Procurement Policy
.
NESA engaged the following businesses:
Cultural Choice
for corporate office supplies that visually represent Aboriginal culture and
knowledges. Engaging Cultural Choice has been a conscious commitment to procuring office
supplies that connect NESA to Cultural Choice’s overall vision of building stronger futures for
Aboriginal children.
Dreamtime Tuka for corporate catering, to enhance reconciliation through the broadening of meal
selection to include native Australian ingredients. Dreamtime Tuka is an Australian native foods
supplier specialising in bush food to share cultural knowledge with the Australian community.
First People Recruitment Solutions (FPRS) for staffing support during the 2020 Higher School
Certificate and in response to the COVID-19 pandemic. FPRS is a 100% Aboriginal owned and
managed recruitment agency that places a diverse talent of Aboriginal and Torres Strait Islander
professionals into corporate organisations. NESA’s engagement with FPRS ensures we continue
diversifying our workforce.
Goanna Solutions for discovery phase service design and workflow automation. Goanna
Solutions is an Aboriginal majority owned social enterprise committed to driving opportunities for
Aboriginal peoples to participate in the digital economy.
Renaming of the NESA Boardroom to the ‘Ngara’ room
Following Metropolitan Local Aboriginal Land Council in-principle approval in the previous reporting year,
NESA announced the renaming of the NESA Boardroom to the Ngara room in September 2020.
Ngara, pronounced [ng – as in ‘sing’] [ara – as in ‘tara’], means ‘to listen’ in Gadigal Language.
Renaming NESA’s Ngara room is a significant milestone and longstanding commitment to NESA’s goal
of working with, and listening to, Aboriginal and Torres Strait Islander peoples, communities, and key
stakeholders.
The renaming of the Ngara room was supported by NESA’s reconciliation artwork procured and
designed in the previous reporting year by Aboriginal artist Danielle Mate
.
NESA’s reconciliation artwork visually represents our journey through contemporary art and was also
made available in the reporting year for staff use in both email signature blocks and as a virtual meeting
background.
NESA Annual Report 2020–21 28
National Sorry Day
NESA supported National Sorry Day (held each year on 26 May) by raising awareness and educating
staff on what National Sorry Day is, as a day that recognises the Stolen Generations – the Aboriginal
and Torres Strait Islander peoples who were forcibly removed from their families and communities.
NESA communicated to its staff the importance and healing power in saying ‘sorry’ and encouraged staff
to reflect on how they can play a part in the healing process for people, our nation, and NESA’s work in
education.
NESA partnered with the Kimberley Stolen Generation Aboriginal Corporation
(KSGAC) in the previous
reporting year to procure five-petal native hibiscus pins for staff. The native pins were picked by KSGAC
as it’s found widely across Australia and symbolises the scattering and resilience of the Stolen
Generations. The colour signifies compassion and spiritual healing. This reporting year and within
COVID-19 restrictions, NESA was able to raise awareness about National Sorry Day by making the
KSGAC native pins available to staff.
National Reconciliation Week
NESA supported National Reconciliation Week (NRW - 27 May to 3 June 2021) by raising awareness
about reconciliation and specifically, two significant reconciliation journey milestones, the 1967
referendum and the High Court Mabo decision.
NESA reflected on NRW by learning about Aboriginal and Torres Strait Islander and non-Aboriginal and
Torres Strait Islander shared histories, cultures, and achievements.
NAIDOC week ‘Always Was, Always Will Be’
For the first year, NESA held an activity each workday to celebrate NAIDOC week in November 2020.
Each activity aimed at encouraging awareness and engagement with NAIDOC week celebrations based
on the theme ‘Always Was, Always Will Be
’.
During NAIDOC week, NESA held: Read, Reflect, Listen, Taste and Experience activities, information
sharing about Acknowledgment of Country and Welcome to Country, NAIDOC week learning journey
trivia and Aboriginal procurement awareness activities.
Kinchela Boys Home Mobile Education Centre
NESA recognises that its organisational reconciliation journey is an ongoing and learning process. NESA
is committed to actively and persistently working together to implement reconciliation in how, what, and
why we do what we do for NSW education.
NESA partnered with Kinchela Boys Home Aboriginal Corporation
(KBHAC) to engage staff in a unique
truth telling, healing and education experience about Survivors of Kinchela Boys Home through the
KBHAC Mobile Education Centre.
As Australia’s first ever Stolen Generations Mobile Education Centre, NESA staff were able to learn
about the Stolen Generations survival journey directly from Uncles who were sent to KBH. Staff learnt
through oral testimony, archival material, animated film, and visual images.
NESA Annual Report 2020–21 29
2.1 Teaching standards
Figure 2.1 NESA quality teaching activity – key statistics 2020–21
2020–21 year in review
More than 165,000 accredited teachers in NSW
More than 6,400 teachers accredited at
Proficient Teacher
7,064 teachers completed Proficient Teacher
maintenance of accreditation
More than 900 further study applications for
maintenance of accreditation
149 Highly Accomplished and Lead Teacher
applications started
898 professional development courses given
interim accreditation
More than 9,850 accredited early childhood
teachers
677 teachers accredited through mutual
recognition
115 accredited Initial Teacher Education
programs operating in NSW
180 Highly Accomplished and Lead Teacher
Preliminary Assessments undertaken
NESA Annual Report 2020–21 30
2.2 Key achievements in Teaching Standards
Accreditation of Professional Development Courses Policy
In July 2020, the Minister requested that NESA conduct a review of processes for assuring the quality of
externally run professional development (PD) courses for teachers in NSW. The review aimed to ensure
teachers have access to the best professional development courses possible to support their ongoing
development by:
ensuring that individual courses demonstrate a genuine focus on improving teaching in the
classroom/learning environment through best practice; and
reducing the number of courses on offer while improving their overall quality.
The review looked at NESA’s processes for assessing and endorsing PD providers to ensure that the
content of individual courses is specifically examined. In response to the review, NESA developed a new
Accreditation of Professional Development Courses Policy (the PD Policy) in consultation with key
stakeholders. In October 2020, the NESA Board endorsed the PD Policy and recommended that the
Minister identify four priority areas for course accreditation:
de
livery and assessment of NSW Curriculum/Early Years Learning Framework (as applicable)
student/child mental health
students/children with disability; and
Aboriginal education and supporting Aboriginal students/children.
In November 2020, the Minister announced the new requirements for accreditation of courses in the four
priority areas and the immediate cancellation of all existing provider and course endorsement. NESA
established a process to provide interim accreditation for courses in the curriculum and disability priority
areas to ensure the ongoing supply of PD for teachers while work on implementing the new
requirements continued into 2021.
In early 2021, NESA worked with key stakeholders and providers to develop and refine principles of
effective professional learning and criteria for assessment of courses under the new PD Policy. In
addition, a survey was sent to over 800 previous providers of PD to capture their views on draft
principles of professional learning and the need for resources to support the implementation of the new
policy.
Work to implement the PD Policy will continue into the 2021-22 reporting year.
Internal Audits of Proficient Teacher Accreditation Records
In response to recommendations from the NSW Auditor-General’s performance audit, Ensuring teaching
quality in NSW public schools (September 2019), NESA implemented a program of risk-based reviews to
provide confidence that Proficient Teacher accreditation decisions align with the Standards.
Findings from the September 2020 internal audit
were used to refine existing advice for Teacher
Accreditation Authorities on how to support valid and reliable judgements about teaching practice at the
Proficient Teacher level for all teachers in NSW, regardless of their stage, context, geographical location
or setting. Work on this will continue into the 2021-22 reporting year.
NESA Annual Report 2020–21 31
Highly Accomplished and Lead Teacher Accreditation Policy
During 2019-20, NESA developed a revised Highly Accomplished and Lead Teacher policy in response
to the NSW Auditor-General’s Report ‘Ensuring teaching quality in NSW public schools
’ and Dr Bruce
Mowbray’s independent review into NESA’s quality assurance processes.
The revised policy aims to streamline the process for teachers to apply for accreditation at the Highly
Accomplished and Lead Teacher accreditation levels and provide better support to teachers and
application assessors.
NESA consulted with a range of stakeholders across the NSW education community during 2019-20 to
develop a revised policy. The NESA Board endorsed the revised policy in August 2020 for Ministerial
approval. NESA will implement the revised policy in the 2021-22 reporting year.
Dedicated unit in Aboriginal education in all NSW Initial Teacher Education
programs
In August 2019, the Minister introduced a requirement for all initial teacher education (ITE) programs to
include a dedicated unit of study in Aboriginal Education. NSW is the first state in Australia to introduce a
requirement, and was announced following extensive consultation with the NSW Aboriginal Education
Consultative Group Inc., the NSW Council of Deans of Education, key education and ITE stakeholders,
NSW education unions, and each of the NSW schooling sectors.
Having this dedicated unit of Aboriginal Education acknowledges the crucial role that teachers have in
meeting the needs of Aboriginal students, but also ensuring that all NSW students have a sound
understanding of Aboriginal culture and histories.
NSW ITE providers were required to include a dedicated unit of Aboriginal Education in their programs
from 2021 onwards. In the second half of 2020, NESA required each provider to explain how they were
addressing the new requirement. This evidence was assessed by a panel and resulted in the
accreditation of all ITE programs being confirmed.
Legislative amendments to the Teacher Accreditation Act 2004
The National Review of Teacher Registration – One Teaching Profession: Teacher Registration in
Australia (2019) required NESA to develop policy on suitability to teach, including definitions of ‘fit and
proper persons’. This requirement emerged from the Royal Commission into Institutional Responses to
Child Sexual Abuse (2017).
In June 2018, the NSW Government accepted all the Royal Commission recommendations related to
school education. During 2019-20, NESA worked in partnership with other NSW Government agencies
to progress work to scope possible future amendments to the Teacher Accreditation Act 2004 to give
effect to Royal Commission recommendations.
Amendments to the Teacher Accreditation Act 2004 will progress through legislative processes into the
2021-2022 reporting year.
The Australian Professional Standards for Teachers
The Australian Professional Standards for Teachers (the Standards) apply to all NSW teachers, and
describe what teachers need to know and do at four career stages. NESA implements the Standards
across its accreditation processes for all NSW teachers, and each year administers a range of programs
supporting teachers to develop their practice against the Standards.
NESA Annual Report 2020–21 32
Initial teacher education and accreditation
Under the NSW education and teaching legislation, NESA’s regulatory function ensures all NSW ITE
programs undergo a rigorous accreditation process
.
NSW ITE programs are assessed against national Standards and Procedures and additional NSW-
specific requirements. NESA liaised with all NSW ITE providers to ensure that all primary ITE programs
address new national standards relating to the teaching of literacy preferencing evidence-based early
reading strategies including phonics. All providers have been required to submit advice by September
2021 on how they are addressing this new requirement in their primary program from 2022 onwards.
Provisional and conditional accreditation of teachers in NSW
All teachers require accreditation with NESA to work in a NSW school or centre-based early childhood
service (service). Provisional and Conditional accreditation
are the beginning stages of teacher
accreditation.
Proficient Teacher accreditation
Information about gaining Proficient Teacher accreditation is available online.
Teachers who are provisionally or conditionally accredited work towards Proficient Teacher accreditation
when they start teaching in a NSW school or early childhood service. Proficient Teacher accreditation is
a mandatory, formative and developmental process.
Voluntary Highly Accomplished and Lead Teacher accreditation
Accreditation at Highly Accomplished and Lead Teacher levels is voluntary and recognises highly
effective, innovative and exemplary teaching practice.
Applications are open to all NSW Proficient Teachers who meet the
Highly Accomplished and Lead
Teacher accreditation eligibility requirements. Application fees apply.
Under the NSW teaching legislation, non-school/service based teacher accreditation is voluntary for
teachers employed in teaching-related roles.
Maintaining accreditation at Proficient, Highly Accomplished and Lead
Teacher
Information about maintaining Proficient Teacher, Highly Accomplished and Lead Teacher accreditation
is available online.
Maintenance of accreditation ensures that all NSW teachers continue to develop their practice and
demonstrate that they continue to meet the Standards for their level of accreditation.
NESA Annual Report 2020–21 33
Working With Children Check
A Working With Children Check (WWCC) clearance is a condition of accreditation and requires renewal
every five years. NESA and employers must verify all clearances with the NSW Office of the Children’s
Guardian (OCG). NESA ensures teachers can update their clearance as required.
Figure 2.2 Teacher accreditation key statistics, 2020-21
In the 2020-21 reporting year:
4,982 teachers completed their first maintenance of accreditation period
2,128 teachers completed their second (or more) maintenance of accreditation period
39 Highly Accomplished and Lead Teacher applications were considered by the Moderating and
Consistency Committee
26 teachers were accredited at Highly Accomplished Teacher
6 teachers were accredited at Lead Teacher
Professional learning
NESA is responsible for determining the quality of Accredited professional development (PD) available to
teachers in NSW to support their ongoing professional learning and accreditation.
As a direct result of changes to teaching practice and modes of delivery necessitated by the COVID-19
pandemic, teachers in NSW demonstrated significant professional growth in 2020-21. In recognition of
this, all teachers actively maintaining accreditation at any point in 2020 or 2021 automatically have five
hours of NESA Accredited PD added to their record in the Electronic Teacher Accreditation Management
System (eTAMS).
In July 2020, the Minister requested that NESA complete an internal review of teacher professional
development quality assurance processes. In November 2020, the Minister announced a new
Accreditation of Professional Development Courses Policy (the PD Policy) which aims to ensure that
teachers have access to high quality PD that meets community expectations and directly supports
teaching practice.
In December 2020, an interim accreditation process was established to enable the ongoing provision of
PD for teachers while resources and assessment criteria to support implementation of the new
requirements were developed in consultation with key stakeholders. Work on full implementation of the
new requirements will continue into the 2021-2022 reporting year.
NESA Annual Report 2020–21 34
Figure 2.3 Professional learning key statistics, 2020-21
In the 2020-21 reporting year
253 provider applications received for interim accreditation of PD courses in the curriculum and
disability priority areas
1,314 courses submitted by providers for interim accreditation reviewed by NESA staff
898 courses confirmed for interim accreditation
154 responses to PD provider survey on new requirements and need for support materials
Revocation, suspension and voluntary cancellation of accreditation
NESA has sole authority to revoke or suspend a teacher’s accreditation. Teachers may have their
accreditation revoked or suspended for:
misconduct
failure to comply with a condition of their accreditation and/or
failure to meet the Standards under the Teacher Accreditation Act 2004.
A teacher may also voluntarily cancel their accreditation.
Table 2.1 Number of teachers whose accreditation was revoked or suspended for misconduct (under
section 24 and/or 25a of the Teacher Accreditation Act 2004) during 2020-21
Accreditation action Number of teachers
Accreditation revoked 39
Accreditation suspended 29
NESA Annual Report 2020–21 35
Table 2.2 Number of teachers whose accreditation was revoked or suspended for not obtaining a
Working With Children Check clearance (under section 25A of the Teacher Accreditation Act 2004) during
2020-21. These cases are not misconduct matters.
Accreditation Action Number of Teachers
Accreditation revoked 0
Accreditation suspended 2,279*
Suspension of accreditation removed and accreditation
reactivated
618
* Of the 2,279 teachers suspended during 2020-21, 618 teachers had their suspension lifted once they provided a Working With
Children Check clearance. The remaining teachers were no longer teaching in NSW. They either retired, were teaching
interstate or overseas, or were no longer working as a teacher.
Table 2.3 Number of teachers whose accreditation was revoked or suspended for not paying their
teacher accreditation fees (under section 25 and Section 24 of the Teacher Accreditation Act 2004) during
2020-21
Accreditation Action Number of Teachers
Accreditation revoked
These teachers had been suspended for over 2 years before
their accreditation was revoked.
2,001
Accreditation suspended 4,815*
Suspension of accreditation removed and accreditation
reactivated
629
* Of the 4,815 teachers suspended during 2020-21, 629 teachers had their suspension lifted once they paid their teacher
accreditation fees. The remaining teachers were no longer teaching in NSW. They either retired, were teaching interstate or
overseas, or were no longer working as a teacher.
Table 3.4 Number of teachers whose accreditation was revoked or suspended for failure to maintain
their accreditation (under section 24 of the Teacher Accreditation Act 2004) during 2020-21
Accreditation action Number of teachers
Accreditation revoked 90
Accreditation suspended 59
NESA Annual Report 2020–21 36
Table 2.5 Number of teachers who applied to voluntarily cancel their accreditation (under section 25E
of the Teacher Accreditation Act 2004) during 2020-21
Accreditation Action Number of teachers
Voluntary cancellation of accreditation 3,351
Internal reviews to suspend or revoke teacher accreditation
NESA is solely responsible for decisions to suspend or revoke the accreditation of teachers in NSW. If a
decision to suspend or revoke a teacher’s accreditation is made, the teacher may seek an internal
review of the decision. An Inspector from NESA’s School Registration and Accreditation directorate
conducts this review.
In 2020–21, NESA Inspectors conducted two internal reviews of decisions to revoke a teacher’s
accreditation and one internal review of a decision to suspend a teacher’s accreditation. All decisions
were upheld.
NSW Civil and Administrative Tribunal
If a teacher appeals the outcome of an internal review decision to suspend or revoke teacher
accreditation, the teacher may appeal to the NSW Civil and Administrative Tribunal.
There was one appeal of this type in 2020-21, which was pending decision in the reporting period
. The
outcome of this appeal will be reported in the 2021-22 Annual Report.
Impact of COVID on teacher accreditation in 2020-21
A range of adjustments were made to teacher accreditation processes in 2020-21 to enable teachers to
focus on the delivery of teaching and learning. Processes for ceasing, suspending and revoking the
accreditation of teachers who do not complete accreditation requirements by their due date were
paused.
For 2020, NESA also obtained the Minister’s approval for the interim rescinding of the NSW requirement
that final year initial teacher education students have to pass Literacy and Numeracy Test for Initial
Teacher Education Students (LANTITE) before their final professional experience placement. Students
were still required to pass LANTITE to graduate.
NESA Annual Report 2020–21 37
3.1 School registration and accreditation
Responsibilities
The Education Act 1990, Education Standards Authority Act 2013 and Teacher Accreditation Act 2004
outline NESA’s responsibilities in relation to school and teacher registration and accreditation, Teacher
Accreditation Authority (TAA) regulation, school providers delivering courses to overseas students, and
home-schooling registration.
NESA’s school registration functions
The NESA Board’s Registration and Accreditation Committee (the Committee) makes recommendations
to the Minister regarding the registration of schools. The Committee also makes decisions about the
accreditation of schools, the approval of TAAs and school providers and the recognition of schools from
outside NSW.
Recommendations and decisions of the Committee are based on the findings of NESA Inspectors or on
the advice of registration systems. The administration of these functions, and evidence of compliance,
are outlined in:
Individual non-government schools –
Registered and Accredited Individual Non-government
Schools (NSW) Manual
Systemic non-government schools – Registration Systems and Member Non-government
Schools (NSW) Manual
Government schooling system – Registration Process for the NSW Government Schooling
System Manual
TAAs – Guidelines for the Regulation of Teacher Accreditation Authorities for Non-government
Schools and Early Childhood Education Centres
School providers – Guidelines for Approved NSW School Providers Delivering Courses to
Overseas Students
Schools from outside NSW – Manual for the recognition of schools outside NSW to present
candidates for the NSW Record of School Achievement and/or Higher School Certificate.
To support NESA’s ongoing regulatory function, NESA Inspectors implement the annual inspection
program for schools and schooling systems by:
inspecting schools, TAAs and school providers seeking registration, accreditation and/or approval
assessing applications for proposed new schools, new Year levels and/or approval as a new TAA
or school provider
monitoring schools, TAAs and school providers where concerns about compliance have been
identified
monitoring internal assurance procedures implemented by the government and non-government
schooling systems to monitor compliance of their member schools
assessing applications for recognition to enter candidates for the award of the Record of School
Achievement and/or Higher School Certificate
investigating compliance concerns raised by complainants and other sources.
NESA Annual Report 2020–21 38
Impact of COVID-19 on the 2020–21 inspection program
In response to the COVID-19 pandemic, NESA amended its 2020 inspection program based on a risk
approach. This included the cancellation of inspections of schools selected randomly.
NESA’s 2021 inspection program was not significantly impacted by the COVID-19 pandemic up until 30
June 2021.
Figure 3.1 NESA school registration 2020–21 inspection program, key statistics
The 2020–21 inspection program included:
150 inspections of individual non-government schools
Monitoring the 12 non-government school registration systems, in relation to internal assurance
mechanisms
Inspections of 1 non-government and 8 government schools, selected randomly
20 inspections of school providers
60 inspections of Teacher Accreditation Authorities
The inspection program includes monitoring the government schooling system. NESA provides advice to
the Minister and the Secretary on government schools’ compliance with requirements similar to those
that apply to non-government schools.
NESA also completed one investigation arising from complaints relating to the compliance of non-
government schools.
Detailed statistics relating to the 2020–21 inspection program and the Committee’s recommendations
and decisions are at Tables 3.1 to 3.2
.
Documentation to support applications
In 2020-21, the breadth and depth of the supporting materials individual non-government schools were
required to upload for online applications for renewal of registration and accreditation was based on an
assessment of risk.
Schools assessed as lower risk provided supporting materials demonstrating a basic level of assurance,
while schools with higher risk indicators were required to submit materials providing a higher level of
assurance about compliance.
Manuals and guidelines
In November 2020, NESA updated the guidelines for TAAs to remove information that related to
transitional arrangements in place for TAAs operating before 1 January 2016 that expired at the end of
2020.
NESA did not amend the manuals for non-government schools and the government schooling system, or
the guidelines for school providers, during 2020-21.
NESA Annual Report 2020–21 39
Annual reports
Under the Education Act 1990, all non-government schools are required to publicly disclose and submit
to NESA an annual report that includes information about the school’s educational and financial
performance measures. Reports referencing the preceding calendar year are to be submitted annually
by the end of June.
Due to the COVID-19 pandemic, the timeframe for submission of annual reports for the 2019 school year
was extended to 9 October 2020.
A 2020 review of a sample of annual reports for the preceding year found that the vast majority of
schools satisfactorily addressed the mandatory reporting measures.
NSW Civil and Administrative Tribunal
The NSW Civil and Administrative Tribunal hears applications for review of recommendations by NESA
to the Minister that a non-government school not be registered, and decisions by NESA that a non-
government school not be accredited.
There were no applications to the NSW Civil and Administrative Tribunal for a review of a NESA
recommendation relating to registration or accreditation during 2020-21.
2020-21 Inspection Program Statistics
At the end of the 2020-21 reporting period, there were 962 non-government schools comprising 395
individual schools and 567 systemic schools.
Table 3.1 NESA Registration and Accreditation Committee recommendations on school registrations,
during 2017–18 to 2020–21
2017–18
2018–19
2019–20
2020–21
Ind.*
Sys.**
Ind.
Sys.
Ind.
Sys.
Ind.
Sys.
Renewal of registration (5 years)
(a)
Primary education
18
1
36
249
27
2
28
3
Secondary education
20
0
28
70
26
1
36
5
Primary and secondary
education
30
0
53
17
82
5
44
4
Education of a kind, or for
children of a kind
4
0
2
0
7
0
4
0
Exemption from
registration
0
0
0
0
2
0
0
0
Total
72
1
119
336
119
8
112
12
Initial registration for new year levels of schooling (1 year)
Primary education
6
0
4
6
7
1
17
1
Secondary education
7
0
13
7
23
1
27
2
Primary and secondary
education
2
0
1
5
0
5
2
3
Exemption from
registration
0
0
0
0
0
0
0
0
Provisional initial
registration
0
0
0
0
0
0
0
0
Total
15
0
18
18
30
7
46
6
Extension of registration (1 year)
NESA Annual Report 2020–21 40
2017–18
2018–19
2019–20
2020–21
Ind.*
Sys.**
Ind.
Sys.
Ind.
Sys.
Ind.
Sys.
Primary education
2
0
4
0
3
0
4
0
Secondary education
3
0
6
0
0
0
1
0
Primary and secondary
education
2
0
4
0
8
0
6
0
Total
7
0
14
0
11
0
11
0
Other recommendations on school registrations
Reduced period of registration
(provisional)
0
0
0
0
0
0
0
0
Cancel registration
1
0
0
0
1
0
1
0
Initial registration of new schools
8
0
5
7
6
3
8
1
Registration of new campuses
of existing schools
0
0
7
1
7
1
8
2
* Ind. = individual non-government schools
** Sys. = systemic non-government schools belonging to a registration system
The variation in the number of recommendations for renewal of registration for each reporting year reflects the number of schools
with registration expiring in each reporting year.
Table 3.2 NESA Registration and Accreditation Committee recommendations on accreditation,
recognition for schools outside NSW and other matters during 2017–18 to 2020–21
2017–18
2018–19
2019–20
2020–21
Ind.*
Sys.*
Ind.
Sys.
Ind.
Sys.
Ind.
Sys.
Renewal of accreditation
(5 years)
(a)
Courses leading to the
award of the
Record of
School Achievement
41
0
67
77
98
0
60
4
Courses leading to the
award of the
Higher
School Certificate
38
0
61
64
87
1
51
3
Initial accreditation for registered schools (1 year)
Courses leading to the
award of the
Record of
School Achievement
3
0
6
7
2
2
8
1
Courses leading to the
award of the
Higher
School Certificate
4
0
4
4
8
2
6
2
Other recommendations on accreditation
Reduced period of
accreditation
(provisional)
0
0
0
0
0
0
0
0
Cancel accreditation 0
0
0
0
1
0
0
0
Initial accreditation for new schools
2
0
1
3
3
3
3
0
NESA Annual Report 2020–21 41
2017–18
2018–19
2019–20
2020–21
Ind.*
Sys.*
Ind.
Sys.
Ind.
Sys.
Ind.
Sys.
for courses leading to the award of
the Record of School Achievement
Initial accreditation for new schools
for courses leading to the award of
the Higher School Certificate
1
0
1
1
1
1
2
0
Recognition for schools outside NSW
Courses leading to the
award of the
Record of
School Achievement
0
0
2
1
Courses leading to the
award of the
Higher
School Certificate
0
0
2
2
Other matters
Recognition as a special
school
5
0
6
1
11
1
11
1
Recognition as a special
assistance
school
3
0
8
2
5
0
9
0
School closed
1
0
5
2
4
4
2
4
Campus closed
11
0
9
4
3
1
8
1
Approval of school
providers of
courses for
students from overseas
16
(b)
21
(b)
47
(b)
15
(b)
Approval of Teacher
Accreditation
Authorities
44
68
109
44
* Ind. = individual non-government school
** Sys. = systemic non-government schools belonging to a registration system
The variation in the number of recommendations for renewal of accreditation for each reporting year reflects the number of schools
with accreditation expiring in each reporting year.
Includes recognition of school providers of English Language Intensive Courses for Overseas Students.
NESA Annual Report 2020–21 42
Table 3.3 New schools granted initial registration in 2020 to commence in the 2021 calendar
year
School Location Year Level
Gateway Community High Carlingford Years 9 and 10
Muslim Girls Grammar School Granville Years 7 and 8
Richard Gill School Muswellbrook Kindergarten to Year 2
St Sava College Varroville Kindergarten to Year 2
Sydney Science College Epping Years 11 and 12
Westbourne College Ultimo Year 11
Wycliffe Hope School Warrimoo
Kindergarten to Year
12
Table 3.4 New Teacher Accreditation Authorities granted initial approval to commence in 2020-21
TAA Association schools/ECECs
International Chinese School Limited International Chinese School, Chatswood
Kinma Limited
Kinma School, Terrey Hills
Kinma Preschool, Terrey Hills
Trinity Catholic College Lismore Ltd Trinity Catholic College, Lismore
Yanginanook Limited Yanginanook School, Belrose
Table 3.5 Schools closed during 2020–21
School
Location
Year level
All Saints College (St Peter's Campus)
Maitland
Years 7 to 10
Pete’s Place Blacktown Years 7 to 10 and
Prescribed Kind
St Columba’s Primary School Berrigan Kindergarten to Year 6
St Francis Xavier Primary School Urana Kindergarten to Year 6
St Joseph’s Catholic Primary School Rosebery Kindergarten to Year 6
Trades Norwest Anglican College
Glenwood
Years 11 and 12
NESA Annual Report 2020–21 43
Table 3.6 Teacher Accreditation Authorities closed during 2020-21
TAA Associated schools/ECECs
Deniliquin Christian School Incorporated Deniliquin Christian School, Deniliquin
Table 3.7 Complaints about non-government schools investigated by NESA officers
during
2017–18 to
2020–21
2017–18
2018–19
2019–20
2020–21
Complaints about individual schools investigated
4
1
3
2
Complaints about systemic schools investigated
0
0
0
0
Complaints about schools with
overseas recognition
investigated
0
0
0
0
Investigations completed
5
3
2
1
Complaints substantiated
5
3
2
1
Complaints ongoing into the next reporting
period
2
0
1
1
Number of complaints investigated per requirement
(a)
Governance
0
0
0
0
Teaching staff
0
0
0
0
Curriculum
1
0
1
0
Safe and supportive environment
4
2
1
0
Premises and buildings
0
0
0
0
Facilities
0
0
0
0
Discipline
2
1
2
1
Attendance
1
0
0
0
Management and operation of the school
0
0
0
0
Educational and financial reporting
0
0
0
0
Boarding facilities
0
0
0
0
(a) For some schools, the complaint related to more than one issue or requirement.
NESA Annual Report 2020–21 44
TAA complaints
NESA investigates complaints about a TAA if there are concerns about systemic non-compliance by the
TAA with the requirements for approval.
To date, NESA has not received a complaint regarding a TAA.
Home schooling registration
The Education Act 1990 provides for parents to home school their children. Under the Act, NESA is
responsible for administering the program for home schooling registration – which involves granting
approval for a child to be schooled at home and maintaining details of children who are registered for
home schooling.
NESA’s Guidelines for Home Schooling Registration in NSW
describe the requirements and processes
for home schooling registration.
Authorised Persons at NESA assess applications for approval for home schooling registration and
provide recommendations to the Minister or the Minister’s delegate.
Children may be registered for home schooling, or approved but exempt from being registered, for a
maximum period of two years. Children with exemption from registration on religious grounds must meet
the requirements for registration.
In response to the COVID-19 pandemic, NESA temporarily ceased home schooling visits but continued
to assess applications for home schooling registration using a risk-based approach. Due to the ongoing
impacts of the COVID-19 pandemic, NESA temporarily adjusted its approach in September 2020 to
review both documents and video/audio evidence in the home school registration process rather than
conducting home visits. This approach to the assessment of applications for home schooling registration
has continued into 2021.
During 2020–21, the number of children registered for home schooling continued to grow (
Tables 3.8
and 3.9). The increase observed at the start of the COVID-19 pandemic, continued into the 2020-21
period.
NESA collects data about parents’ reasons for choosing to seek home schooling registration on an opt-in
basis. Since 2010, the most common reasons have been philosophical choice and an individualised
approach to addressing the special learning needs of the child, with a smaller percentage of respondents
indicating that they choose to home school for religious reasons. A number of applicants choose not to
answer this question or select the option of ‘other’.
Consultation and new guidelines for home schooling registration
In 2015, NESA established a Home-Schooling Consultative Group (HSCG) to engage with the home
schooling community and consult on issues affecting the community. During 2020–21, the HSCG met
four times. The discussions focused on progressing a review of NESA’s
Guidelines for Home Schooling
Registration in NSW, as well as discussion about the home schooling registration process in response to
the COVID-19 pandemic.
Professional learning forums
Each year, NESA provides regular professional learning forums for Authorised Persons who assess
applications for home schooling registration. In 2020–21, topics included child protection, updates on the
NSW Curriculum Reform, and the home-schooling registration process in response to the COVID-19
pandemic.
NESA Annual Report 2020–21 45
NSW Civil and Administrative Tribunal
The NSW Civil and Administrative Tribunal hears applications for review of recommendations to refuse
home schooling registration. During 2020–21, one parent appealed a recommendation to refuse home
schooling registration for their child. The applicant later chose to withdraw the appeal.
Table 3.8 Number of children with home schooling registration at the end of reporting period, during
2017–18 to 2020–21
2017–18
2018–19
2019–20
2020–21
Number of children with registration 5,066 5,698 6,534 7,808
Number of families 3,027 3,498 3,996 4,897
Table 3.9 Number of children with exemption from home schooling registration at the end of
reporting period, during 2017–18 to 2020–21
2017–18
2018–19
2019–20
2020–21
Number of children with exemption from
registration
183 189 196 235
Number of families 95 83 94 127
NESA Annual Report 2020–21 46
4.1 NSW Curriculum Achievements
NESA is responsible for developing courses of study for primary and secondary schools under the
Education Act 1990. A course of study, or syllabus, describes the aims, objectives, content and
outcomes of student learning in NSW schools. NESA develops NSW syllabuses through extensive
consultation with teachers, subject experts, academics and the community.
In 2020-21, curriculum development was undertaken in the context of the NSW Curriculum Reforms. In
response to the recommendations of the NSW Curriculum Review, the NSW Government identified the
following priorities for the early, middle and later years of schooling:
building strong foundations for future learning by 2022 with new English and Mathematics
syllabuses for Kindergarten to Year 2
more time for teaching by 2022 by reducing the hours teachers spend on extra-curricular topics
and issues and compliance requirements
strengthening post-school pathways by 2022 with new learning areas for Years 11 and 12 that
clearly link learning to future employment and study options
a new curriculum from 2024 with new syllabuses focused on what is essential to know and do in
early and middle years of schooling, and in key learning areas in the senior years.
In 2020-21, NESA established the program of work required to implement the above priorities. To
support the five workstreams and 15 projects that contribute to the reform outcomes, a program
management and governance framework has been developed. Substantial recruitment has also begun
to ensure that NESA has access to the expertise required to deliver the curriculum reforms. This
recruitment is ongoing in 2021-22.
Throughout the reporting period a new syllabus development process was established to guide the
review of K-12 syllabuses. The new process supports strengthening the evidence base for syllabus
content in line with the curriculum reform recommendations, and increasing the role of expertise, quality
assurance, and transparency of decision-making in the syllabus development process.
Supporting the Kindergarten to Year 12 curriculum
NESA is committed to a syllabus development process that provides opportunities for consultation and
ensures quality syllabuses. During 2020-21, NESA developed a range of support materials for the
Kindergarten to Year 12 curriculum, including advice for teaching and assessing students with disability,
including sample units and case studies.
NESA publishes K-10 support materials
on the NESA website.
Vocational education and training
Vocational education and training (VET) courses allow students to study and achieve nationally
recognised vocational qualifications, for which students receive credit for the RoSA and HSC. The VET
curriculum supports school-based apprenticeships and traineeships providing students with a pathway to
employment and future careers. Most students undertaking a VET course as part of their HSC do so
through industry curriculum frameworks developed by NESA.
There are 12 industry curriculum frameworks operating in NSW. Information on
industry curriculum
frameworks is available on the NESA website.
NESA Annual Report 2020–21 47
Supporting students with disability to access the curriculum
NESA is committed to supporting students with disability to access quality curriculum and ensures
syllabuses and support materials are developed to include the full range of learning needs.
Schools and teachers have obligations under the Disability Standards for Education 2005 to provide
reasonable adjustments for students with disability. During the 2020–21 reporting year, NESA has
provided advice in conjunction with the NSW Department of Education on the recommendations in the
Australian Government led review of the Disability Standards for Education 2005.
NESA continues to work closely with key disability stakeholders to inform a range of policy development
and program activities, including the NSW Chapter of the Australian Association of Special Education
(AASE). NESA attends, participates in, and facilitates meetings and workshops relating to its own
projects, as well as joint initiatives with other agencies, to support students with disability.
In January 2021, NESA established the Disability Education Forum (the Forum) to increase engagement
with stakeholders with Disability Education expertise. The Forum currently has 11 members (with one
vacant position) and includes representatives from all school sectors and independent external
stakeholder groups. The Forum met once during the reporting period to advise the NESA Board on
curriculum, assessment and teacher professional development issues relating to disability. The Forum
will continue to meet in the 2021–22 reporting year.
Life Skills
Life Skills outcomes provide course options for students with disability who cannot access the regular
course outcomes, particularly students with an intellectual disability.
Under the NSW Curriculum Reforms, NESA continues to develop Life Skills outcomes and content for
Years 7–12 courses. More information on Life Skills is available on the NESA website.
Australian Curriculum
During 2020–2021, NESA engaged with the Australian Curriculum, Assessment and Reporting
Authority’s (ACARA) review of the Australian Curriculum. In 2021, NESA coordinated a NSW
Government response to the proposed revisions in consultation with the NSW school sectors. Since the
Australian Curriculum was first implemented in 2010, NSW has taken an ‘adopt and adapt’ approach to
Australian Curriculum content to meet the needs of students in NSW. This means that NSW syllabuses
feature Australian Curriculum content, while also retaining key components and structural elements
specific to NSW syllabuses. NSW will continue this approach in 2021-22.
Priority areas for 2021-22
Initiatives will be progressed in 2021-22 for all Curriculum Reform priorities. NESA will deliver the
following in 2021-22:
New K-2 English and Mathematics syllabuses, intended for release in Term 4, 2021. This follows
two public consultation rounds, workshops, and targeted meetings with education stakeholders.
Professional learning accessible via a new Learning Management System (LMS), for NSW K-2
teachers to support planning, familiarisation and trialling of the English and Mathematics
syllabuses in their local school contexts throughout 2022.
New syllabus support materials that will provide more detailed, accessible advice to teachers
regarding how syllabus outcomes and content can be used in flexible ways to support students
who are progressing well, who are advanced, or need further assistance.
Consider options for a major project for secondary school students.
NESA Annual Report 2020–21 48
Rules and requirements for the Higher School Certificate and Record of School Achievement
credentials will be updated and clarified as policy decisions are made in other Curriculum Reform
projects.
A new ‘digital curriculum’ available for teachers and the broader community to access the new
curriculum. The new platform will be launched to coincide with the release of the new K-2 English
and Mathematics syllabuses.
Decisions on updates to compliance requirements to reduce the amount of time teachers spend
on paperwork and compliance activities.
NESA Annual Report 2020–21 49
5.1 Student assessment
Figure 5.1 NESA activity related to the 2020 Higher School Certificate
2020 Higher School Certificate in review
75,674 HSC candidates,
66,402 credentials awarded
121 H
SC examinations developed
17
days of written examinations
7,
347 examination supervisors
81 supervisors of marking
1 student received First In Course awards for
three courses
71 students sat examinations outside NSW,
under individual circumstances
Over 15,000,000 pages of examination papers
printed
51 HS
C courses with speaking examinations
5,
796 HSC markers
88% of courses marked totally or partially on
screen
605 students sat an online HSC examination,
for the Science Extension course
NESA Annual Report 2020–21 50
5.2 Key achievements in student assessment
Higher School Certificate (HSC)
Under the NESA Act, NESA is responsible for issuing the:
Higher School Certificate (HSC) at the completion of Year 12
Record of School Achievement (RoSA) to eligible students who leave school before completing
the HSC.
The HSC and RoSA credentials provide students with a comprehensive and meaningful report of what
they have accomplished during their schooling. These credentials are important documents for students
seeking employment, further education and university entrance.
2020 HSC
New HSC Mathematics syllabuses examined
In 2020, the new Mathematics Advanced, Mathematics Extension 1 and Mathematics Extension 2
syllabuses were examined for the first time. This was also the first year that the Mathematics Standard 2
examination had common questions with Mathematics Advanced.
2020 HSC results
NESA issued students their HSC results via email and SMS. Students’ results were also made available
via the Students Online website.
NESA provides a number of HSC results services
for students, teachers and principals. More information
on these services is available on the NESA website.
Figure 5.2 HSC results services key statistics, 2020-21
During the 2020-21 reporting year:
715 student inquiries to HSC Results Inquiry Centre (excluding PIN requests)
1,303 students ordered one or more post-HSC services, with 4,877 total items requested from HSC post-results
service
830 schools accessed the Results Analysis Package, with 13,951 unique users
NESA Annual Report 2020–21 51
Student support for the HSC
Disability provisions
Disability provisions are practical arrangements designed to help students with a disability (verified by
functional evidence), so that they can access the questions in the HSC examinations and communicate
their responses.
The NESA disability provisions program complies with the Disability Discrimination Act 1992 (Cth) (DDA)
and the Disability Standards for Education 2005, issued under the DDA, and requires that a student is
neither advantaged nor disadvantaged through the allocation of provisions.
NESA publishes comprehensive statistics on disability provisions
on the NESA website. NESA regularly
reviews and updates the disability provisions guidelines to ensure clarity and accessibility.
The 2018 Review of Disability Provisions in the HSC – Review of implementation, conducted by John
Firth, found that NESA’s approach to disability provisions were procedurally fair and complied with
legislative requirements. This review made several recommendations to strengthen the implementation
of disability provisions in NSW schools, which NESA has worked to implement during 2020-21 in
consultation with key stakeholders and the Assessment and Special Education Committees of the NESA
Board.
Education experts and independent auditors ensure that decisions taken under the Disability Provisions
program are fair, appropriate and consistent, by reviewing the disability provisions program regularly. All
reviews and audits conducted on the disability provisions program
are listed on the NESA website.
HSC illness/misadventure applications
Students who are prevented from attending an examination (including speaking/listening or practical
examinations), or who consider that their performance has been affected by illness and/or misadventure
immediately before or during an examination, may submit an illness or misadventure application. In
2020, an additional category was added in response to the COVID-19 pandemic that catered for
students who had no access to teaching and learning for an extended period.
NESA published comprehensive statistics on illness/misadventure applications
for the period including
the 2020-21 reporting year on the NESA website.
Minimum standard literacy and numeracy tests
2021 is the second year students are required to demonstrate a minimum standard of literacy and
numeracy to be awarded the HSC. In 2020, one per cent (693) of students, otherwise eligible for the
HSC, did not meet the HSC minimum standard. Students have up to five years after starting their first
HSC course to demonstrate the HSC minimum standard.
NESA publishes resources for students, parents and teachers, as well as information about the tests,
disability provisions and exemptions. These resources and more detailed information about
HSC
Minimum standard are available on the NESA website.
NESA Annual Report 2020–21 52
Record of School Achievement
The Record of School Achievement (RoSA) is a credential provided to eligible students who leave school
after Year 10 and before completing the HSC. The credential recognises student achievement in all
courses completed in Years 10 and 11.
Figure 5.3 Record of School Achievement key statistics, 2020
During the 2020-21 reporting year:
95,433 students enrolled in at least one Stage 5 course eligible for inclusion towards the RoSA (Term 1, 2020)
National Assessment Program – Literacy and Numeracy (NAPLAN)
The National Assessment Program – Literacy and Numeracy (NAPLAN) tests identify whether students
have the literacy and numeracy skills that provide the critical foundation for their learning.
NESA is the test administration authority for all schools in NSW and for international schools registered
with NESA. More information on NAPLAN
is available on the NESA website.
Cancellation of 2020 NAPLAN tests
In March 2020, the Council of Australian Governments (COAG) Education Council decided to cancel
NAPLAN testing for 2020. This decision aimed to help principals, teachers and school staff focus on
student learning during the COVID-19 pandemic.
This decision meant that NESA did not administer NAPLAN tests in NSW and ACT schools during the
2019–20 reporting year and there were no results for 2020.
2021 NAPLAN tests
During the 2020-21 reporting period, NESA supported 3,092 schools in NSW and 129 schools in the
ACT to administer 2021 NAPLAN tests.
Figure 5.4 NAPLAN key statistics, 2021
During the 2020-21 reporting year:
384,259 NSW students sat NAPLAN in 2021
1,509,140 NAPLAN tests were completed in NSW, of which 1,022,984 were completed online
NESA received 5,065 calls and 1,815 emails during the two-week NAPLAN period
Supporting the transition to NAPLAN Online
At an Education Council meeting on 12 June 2020, Commonwealth, state and territory ministers agreed
that due to the cancellation of NAPLAN 2020, the full transition to NAPLAN Online would be deferred
from 2021 to 2022. All states and territories agreed to maximise participation in 2021 before a full
transition in 2022.
Despite the cancellation of NAPLAN in 2020, NESA provided support to NSW schools intending to
transition to NAPLAN Online in 2021.
NESA Annual Report 2020–21 53
Any NSW school intending to transition to NAPLAN Online in 2021 participated in a school readiness
test (conducted in Terms 3 and 4). The information generated from the readiness test helped to
determine the most suitable time for NSW schools to transition to NAPLAN Online.
In 2021, 436 NSW schools undertook NAPLAN Online for the first time.
Into the 2021–22 reporting year, NESA will continue to support all NSW schools to complete the full
transition to NAPLAN Online by 2022, as agreed by Education Council.
Australian Music Examinations Board (NSW)
The Australian Music Examinations Board (NSW) is responsible for administering practical and written
examinations in Music and Speech and Drama in accordance with the Australian Music Examinations
Board (AMEB) requirements.
These examinations range from preliminary grades through to the Fellowship in Music Australia and
Fellowship in Speech and Drama Australia. Detailed information about the AMEB membership
is
available on the AMEB NSW website.
Key achievements in 2020–21
The AMEB (NSW) conducted over 30,000 examinations throughout NSW and the ACT during 2019–20.
Figure 5.5 AMEB administration statistics, 2020–21
In 2020–21, AMEB administered:
90 practical music syllabuses
4 practical speech and drama syllabuses
4 written syllabuses
Figure 5.6 AMEB award statistics, 2020–21
In 2020–21, AMEB awarded:
136 associate diplomas
38 licentiate diplomas to musicians
3 diplomas to speech and drama candidates
Overseas marking – 2020 HSC
In response to the COVID-19 pandemic, HSC markers employed by NESA did not travel overseas for
the marking of 2020 HSC practical and performance examinations. For Design and Technology,
Industrial Technology and Visual Arts, along with all other teachers of these courses, marks were
provided by each school for their students’ works. For Drama and Music videos of performance exams
were sent to NESA where they were marked by HSC markers.
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NESA Annual Report 2020–21 55
registration, evidence of compliance, and the process undertaken by NESA in assessing an application.
The sessions also included advice about seeking initial approval as a TAA.
Briefings are held for non-government school registration systems to advise systems about updated
information, changes to legislation, emerging issues and plans for monitoring systems. Due to the
COVID-19 pandemic, the November 2020 briefing was cancelled. A videoconference briefing was held in
March 2021.
In August 2020, the AISNSW hosted a school provider videoconference briefing delivered by a NESA
Inspector for currently approved school providers and those seeking initial approval. The briefing helped
school providers to understand the requirements for approval and the application and assessment
process.
Professional learning forums
Each year, NESA provides regular professional learning forums for Authorised Persons who assess
applications for home schooling registration. In 2020-21, these forums were videoconference briefing
sessions due to the COVID-19 pandemic. The topics included:
child protection including recent legislative amendments regarding mandatory reporting and use
of the Mandatory Reporter Guide (MRG)
updates on the home-schooling registration process in response to COVID-19
updates on the NSW Curriculum Reform
the review of the Guidelines for Home Schooling Registration in NSW
the role of a support person.
HSC marking opportunities
Each year, HSC marking is done via either a pen-and-paper process or onscreen marking. The onscreen
marking and metropolitan/regional day marking programs for the 2020 HSC supported teachers from
rural and regional schools across NSW to access HSC marking opportunities.
In 2020-21, four marking centres in metropolitan and regional areas conducted day marking in 2020.
NESA met the cost of employing casual teachers to replace teachers appointed to attend briefing or
marking sessions during school hours.
66 teachers participated in the 2020 HSC Rural and Remote Marking Program (RRMP). The RRMP is a
joint program run each year by NESA, the NSW Department of Education and Catholic Schools NSW.
This is a valuable professional development program which gives teachers based in rural and remote
areas the opportunity to participate in HSC marking by allowing onscreen marking of some subjects.
In May 2021, NESA also conducted a series of HSC Marking Workshops in collaboration with the NSW
Department of Education and Catholic Schools NSW. The workshops were designed to give participants
a taste of what it is like to be an HSC marker and included a session on using the Results Analysis
Package to better understand their students’ results. 200 participants from rural and remote areas across
NSW took part in simulated marking sessions for Business Studies, English Advanced Paper 2 and
Mathematics Standard 2.
NESA Annual Report 2020–21 56
7.1 Managing human resources
People and Culture
NESA promotes an inclusive and collaborative working culture that values diversity, and supports staff
and managers to achieve organisational objectives. In 2020-21, the COVID pandemic meant NESA’s
people strategies focused significantly on support to staff and their managers to manage work effectively
while working remotely and flexibly, including investment in additional technology infrastructure and
increased internal communications. This effort included additional emphasis and support for staff well-
being during the pandemic. NESA established an internal group that met regularly to adjust NESA’s
approach based on evolving Public Health Orders and in alignment with other agencies across the public
sector. Through surveys and other feedback mechanisms NESA’s executives had confidence in NESA’s
people operations while continuing to deliver education services under pandemic conditions
NESA’s overall people and culture approach leverages the support of the Public Service Commission
and its materials, identification of emerging trends from the annual People Matter Employee Survey
(PMES) and consultative mechanisms with NESA staff. NESA has seen broad improvements in its
PMES results in recent years.
In 2020-21, NESA launched a simplified Performance Development Planning and Review approach that
emphasises the NSW Public Sector Capability Framework and identification of staff development needs
and support opportunities. Aligned to this, NESA is committed to improving organisational learning and
development opportunities, including leveraging partnerships with the Institute of Public Administration
(NSW) and the Australian and New Zealand School of Government.
Staffing and recruitment
The table below provides the distribution of NESA staff by category, counted by Full-Time Equivalent
(FTE), for the periods 2018–19 to 2020–21. Over the course of the year, 286 full-time equivalent casual
staff were engaged principally to assist with the peak periods associated with Higher School Certificate
programs.
Table 7.1 Distribution of NESA staff by category, 30 June 2019 to 30 June 2021
2019
2020
2021
F*
M*
Total
F
M
Total
F
M
Total
General scale
1.0
1.0
2.0
1.0
1.0
2.0
4.0
1.0
5.0
Grade 1/2
8.0
5.0
13.0
6.6
8.0
14.6
13.0
10.0
23.0
Grade 3/4
48.2
14.3
62.5
49.8
8.3
58.1
53.6
14
67.6
Grade 5/6
34.6
10.8
45.4
32.6
18.8
51.4
40.6
14.8
55.4
Grade 7/8
26.6
16.7
43.3
28.6
18.7
47.3
39.4
21.7
61.1
Grade 9/10
33.8
17.8
35.0
35.4
50.6
50.6
35.4
19
54.4
Grade 11/12
19.3
12.8
32.1
19.4
15.8
35.2
14.4
17
31.4
Senior
Education
Officer
57.3
17.2
74.5
48.9
15.2
64.1
49.6
17.4
67.0
NESA Annual Report 2020–21 57
2019
2020
2021
F*
M*
Total
F
M
Total
F
M
Total
Principal
Education
Officer
12.0
1.0
13.0
14.6
1.0
15.6
15.0
1.0
16.0
Chief
Education
Officer
21.4
15.0
36.4
22.0
13.0
35.0
22.0
16.0
38
Executive
9.0
13.0
22.0
7.0
13.0
20.0
8.0
10.0
18
Totals
262.1
119.9
382.0
271.2
124.6
395.8
295.0
141.9
436.9
*Key: F = Female, M = Male
Note: NESA has revised to a FTE methodology for the 2020-21 Annual Report. Staffing distribution data for the 2019 and 2020
financial years (in Table 7.1) may differ from that reported in previous annual reports.
Public Service Senior Executive (PSSE) staff
At 30 June 2021, NESA employed 18 Public Service Senior Executive staff.
In 2020–21, 5.28% of NESA employee-related expenditure was for senior executives, compared with
7.24% in the 2020-2021 reporting year.
Table 7.2 Number of NESA Public Service senior executives, by gender and band level, at 30 June
2020 and 30 June 2021
30 June 2020
30 June 2021
Band
Female
Male
Female
Male
Band 4
0
0
0
0
Band 3
0
1
0
1
Band 2
3
2
2
1
Band 1
4
10
6
8
Total
7
13
8
10
Overall total
20
18
NESA Annual Report 2020–21 58
Table 7.3 Average total remuneration for NESA Public Service senior executives per band at 30 June
2020 and 30 June 2021
Average total remuneration ($)
Band
30 June 2020
30 June 2021
Band 4 Not applicable Not applicable
Band 3
400,000
400,000
Band 2
313,961
325,550
Band 1
235,616
241,748
Workforce diversity
NESA is committed to maintaining and progressing a diverse workforce and aims to increase its
workforce diversity every reporting year. NESA is committed to the principles of multiculturalism as
contained in the Multicultural NSW Act 2000.
This section outlines trends in the representation and distribution of workforce diversity groups in NESA
over the past three years (Table 7.4), as well as NESA workforce diversity achievements in 2020-2021
and strategies for 2021-2022.
Table 7.4 Trends in representation of workforce diversity groups in NESA, 2019–20 to 2020–21
Workforce diversity group
Benchmark
or
target (%)
30 June
2019
(%)
30 June
2020
(%)
30 June
202
1
(%)
Women
50.0
69.0
67.0
75.0
Aboriginal people and Torres Strait
Islander
Peoples
2.6
2.0
2.6
2.7
People whose first language as a child
was
not English
19.0
18.0
18.0
21.0
People with a disability
n.a.
1.0
1.0
1.0
People with a disability requiring work-
related adjustment
1.5
1.0
1.4
1.2
NESA Annual Report 2020–21 59
Table 7.5 Trends in distribution of workforce diversity groups in NESA, 2018–19 to 2020–21
Workforce diversity group
Benchmark or
target (%)
30 June
2019 (%)
30 June
2020(%)
30 June
2021 (%)
Women
100
94
90
93
Aboriginal people and Torres Strait
Islander
Peoples
100
n.a.
n.a.
n.a.
People whose first language as a child
was
not English
100
88
88
87
People with a disability
100
n.a.
n.a.
n.a.
People with a disability requiring work-
related adjustment
100
n.a.
n.a.
n.a.
Notes: A distribution index of 100 indicates that the centre of the distribution of the workforce diversity group across salary levels
is equivalent to that of other staff. Values less than 100 mean that the workforce diversity group tends to be more concentrated
at lower salary levels than is the case for other staff. The more pronounced this tendency is, the lower the index will be. In
some cases, the index may be more than 100, indicating that the workforce diversity group is less concentrated at lower salary
levels.
The distribution index is not calculated where workforce diversity group or non-workforce diversity group numbers are less than
20.
Workforce diversity achievements for 2020–21
NESA’s workforce diversity achievements during the 2020–21 reporting year included:
streamlined communication in all advertised roles to promote NESA’s commitment to an inclusive
and diverse workplace
promoting job opportunities in appropriate channels to increase our reach to Aboriginal and
Torres Strait Islander communities
participating in the 2020 Jawun Secondment Program to support Aboriginal community projects
a new Flexible Working Policy to continue supporting flexible working conditions for all
employees, and to create a supportive environment with flexible working options
supporting staff transition to working from home arrangements in response to the COVID-19
pandemic
celebrating NAIDOC week in a COVID-19 safe way
raising awareness about National Sorry Day
working with the Kimberley Stolen Generation Aboriginal Corporation (KSGAC) to support
National Sorry Day
raising awareness about National Reconciliation Week to promote stronger relationships between
Aboriginal and Torres Strait Islander Peoples and communities, and
continuing to implement our Innovate Reconciliation Action Plan (RAP) and Commitment to
Aboriginal Education.
NESA Annual Report 2020–21 60
Workforce diversity strategies for 2021–22
NESA’s key workforce diversity strategies for 2020–21 include:
continuing the review of NESA people management policies, processes, and practices, including
recruitment, on boarding and induction, to reduce bias and ensure inclusivity
promoting diversity and inclusion across NESA through workplace culture training and other
resources
using the information gathered through the NESA workforce profile data to analyse and build
channels to promote diversity
celebrating and participating in key Aboriginal and Torres Strait Islander milestones to provide
opportunities to build and maintain relationships between Aboriginal and Torres Strait Islander
Peoples and other Australians
engaging employees in cultural learning opportunities to increase understanding and appreciation
of Aboriginal and Torres Strait Islander cultures, histories, and achievements
supporting NESA staff to understand the significance of Aboriginal and Torres Strait Islander
cultural protocols, such as Acknowledgement of Country
providing opportunities for Aboriginal and Torres Strait Islander staff to engage with their culture
and communities by celebrating NAIDOC Week
progressing our RAP working group activities to oversee implementation of our reconciliation
activities, including in three focus areas – relationships, respect, and opportunities.
Work health and safety
NESA complies with the consultative requirements of the Work Health and Safety Act 2011. The NESA
Health and Safety Committee oversees these requirements.
There were eight Workers Compensation Claims reported in 2020-21, with falls being the most prevalent
mechanism of injury across the organisation. There were no SafeWork prosecutions in 2020-21.
Conditions of employment
NESA staff are employed under the Government Sector Employment Act 2013 with relevant conditions
determined by the following Awards:
Crown Employees (Public Service Conditions of Employment) Reviewed Award 2009
Crown Employees (Public Sector- Salaries 2021) Award
Crown Employees (Board of Studies, Teaching and Educational Standards - Education Officers)
Salaries and Conditions Award 2020
Higher School Certificate Marking and Related Casual Employees Rates of Pay and Conditions
Award 2019
Crown Employees (Australian Music Examinations Board (New South Wales) Examiners,
Assessors and Chief Examiners) Award 2020
Industrial relations policies and practices
Industrial relations policies and practices at NESA accord with the direction and guidance provided by
the Industrial Relations Branch of the NSW Treasury, the NSW Public Service Commission, the
Department of Premier and Cabinet and relevant government policies.
NESA Annual Report 2020–21 61
Code of Ethics and Conduct
NESA is committed to ethical conduct. This commitment is reflected in its Code of Ethics and Conduct
for NESA Employees which sets the standards of behaviour expected of employees and provides
guidance to all staff in being responsive to the needs of customers and key groups. The code has been
distributed to all staff and is provided to new staff as part of the induction process.
Exceptional movements in employee wages, salaries, or allowances
There were no exceptional movements in employee wages, salaries, or allowances in 2020-21.
Recreation leave and extended leave liability
The monetary value of extended (long service) leave and recreation leave, as of 30 June 2021, for
NESA was:
Extended leave: $ 16,434,853.
Recreation leave: $ 6,493,846.
NESA Annual Report 2020–21 62
8.1 Audit and Financial statements
Delivering NESA strategic and operational activities
The NESA Chief Executive Officer (CEO) leads and oversees the implementation of NESA strategic and
operational activities.
The following corporate governance committees support the CEO in overseeing these activities:
Executive Leadership Team
Senior Leadership Group
Audit and Risk Committee
Information and Physical Security Committee
Information Management and Technology Committee.
Audit and risk management
The approach of NESA to audit and risk management complies with the requirements of Treasury Policy
Paper 20-08 Internal Audit and Risk Management Policy for the General Government Sector (TPP20-
08).
Audit and Risk Committee
Treasury Guidelines prescribe the establishment, composition and functions of an Audit and Risk
Committee. The objective of the Audit and Risk Committee is to provide independent assistance to the
Chief Executive Officer by overseeing, reviewing and providing advice about NESA governance
processes, risk management and control frameworks, and its external accountability obligations.
The Committee has no executive powers.
The Committee is directly responsible and accountable to the Chief Executive Officer for the exercise of
its responsibilities. In carrying out its responsibilities, the Committee must always recognise that primary
responsibility for management of NESA rests with the Chief Executive Officer.
The responsibilities of the Committee may be revised or expanded in consultation with, or as requested
by, the Chief Executive Officer from time to time. Membership of NESA’s Audit and Risk Committee is
included in the Internal Audit and Risk Management Attestation Statement below.
Legislative requirements
During 2020–21, NESA continued to meet its legislative obligations under various Acts and regulations.
NESA reporting under the Government Information (Public Access) Act 2009 is at Appendix D
. A range
of statutory disclosures are provided at Appendix E.
Public interest disclosures
No public officials made a public interest disclosure to NESA during 2020–21. No public interest
disclosures were finalised by NESA during 2020–21.
NESA has established public interest disclosure policy and procedures that are available to all staff on its
intranet site. The Chief Executive Officer has ensured that all staff are aware of the policy and
procedures by undertaking internal briefings, training new staff, and sending email messages and
circulars to staff.
NESA Annual Report 2020–21 63
Complaints management
NESA devolves complaint resolution to line managers and staff at the point of delivery of services. NESA
is generally able to directly remedy or resolve problems at the source as they arise. NESA applies the
NSW Government customer service delivery standards as a reference point for clients and staff in this
process.
NESA addressed complaints arising from these matters in accordance with the Act or via structured
appeal mechanisms. The NESA Complaints handling policy and process
can be viewed on the NESA
website.
NESA Annual Report 2020–21 64
Internal Audit and Risk Management Attestation Statement for the 2020–21
Financial Year for the NSW Education Standards Authority
I, Paul Martin, am of the opinion that the NSW Education Standards Authority has internal audit and risk
management processes in operation that are compliant with the seven (7) core
requirements set out in the Internal
Audit and Risk Management Policy for the NSW Public Sector,
specifically:
Core Requirements
Risk Management Framework
1.1
The agency head shall accept ultimate responsibility and accountability
for risk
management in the agency
compliant
1.2
The agency head shall establish and maintain a risk management
framework that is appropriate to the agency. The agency head shall
ensure the framework is consistent with
AS/NZS ISO 31000:2018
compliant
Internal Audit Function
2.1
The agency head shall establish and maintain an internal audit function
that is appropriate for the agency and fit for purpose
compliant
2.2
The agency head shall ensure the internal audit function operates
consistent with the International Standards for Professional Practice for
Internal Auditing.
compliant
2.3
The agency head shall ensure the agency has an Internal Audit Charter
that is consistent with the content
of the ‘model charter’
compliant
Audit and Risk Committee
3.1
The agency head shall establish and maintain efficient and effective
arrangements for independent Audit and Risk Committee oversight to
provide advice and guidance to the agency head on the agency’s
governance processes, risk management and control frameworks, and
its external accountability obligations.
compliant
3.2
The agency head shall ensure the Audit and Risk Committee has a
Charter that is consistent with the content of the ‘model charter’
compliant
Membership
The chair and members of the Audit and Risk Committee are:
Independent Chair, Mr John Gordon (appointed 1 March 2019 to 28 February 2022)
Independent member, Dr Gul Izmir (appointed 1 March 2014 to 28 February 2022)
Independent member, Ms Joan Wilcox (appointed 17 September 2015 to 28 February 2022).
These processes demonstrate that the NSW Education Standards Authority has established and maintained
frameworks, including systems, processes and procedures for appropriately managing audit and risk within the NSW
Education Standards Authority.
Pau
l Martin
Chief Executive Officer
29 October 2021
NESA Annual Report 2020–21 65
9.1 Financial management
The 2020–21 audited financial statements for the NSW Education Standards Authority and the NESA
Staff Agency are provided at Appendix H
of this report. This section provides additional information on
financial management, including payment of accounts, contracting, consultancies and major works.
Payment of accounts
NESA carries out accounts payable procedures in accordance with the NSW Government’s payment of
accounts policy, as required by the Treasurer’s Directions and the Public Finance and Audit Regulation
2010.
Table 9.1 shows the time taken for payment of accounts in 2020–21. Table 9.2 shows details of
accounts paid within each quarter.
Table 9.1 Time for payment of accounts, 2020–21
Quarter
Current,
Less than 30
days overdue
($’000)
Between 30
Between 60
More than 90 days
overdue ($’000)
(2020–21)
ie within
due date
($’000)
and 60 days
overdue
($’000)
and 90 days
overdue ($’000)
All suppliers
September 16,816 90 67 6 Nil
December 27,689 206 31 22 Nil
March 20,123 113 113 90 Nil
June 21,591 238 48 39 Nil
Small business suppliers
September 391 Nil Nil Nil Nil
December 307 Nil Nil Nil Nil
March 345 Nil Nil Nil Nil
June 327 Nil Nil Nil Nil
Table 9.2 Details of accounts due or paid within each quarter, 2020-21
Measure Sep-20 Dec-20 Mar-21 Jun-21
All suppliers
Number of accounts due for payment 1,552 2,191 1,850 2,309
Number of accounts paid on time 1,443 2,148 1,789 2,117
Dollar amount of accounts due for payment 16,978,263.53 27,947,978.48 20,438,830.71 21,915,636.37
Dollar amount of accounts paid on time 16,815,809.54 27,689,156.49 20,122,809.00 21,591,333.91
Number of payments for interest on overdue
accounts
Nil Nil Nil Nil
Interest paid on overdue accounts Nil Nil Nil Nil
Small business suppliers
(a)
Number of accounts due for payment to small
business
60 68 69 86
NESA Annual Report 2020–21 66
Measure Sep-20 Dec-20 Mar-21 Jun-21
Number of accounts due to small business paid
on time
60 68 69 86
Dollar amount of accounts due for payment to
small business
401,812.00 321,977.00 347,286.00 345,879.00
Dollar amount of accounts due to small
business paid on time
401,812.00 321,977.00 347,286.00 345,879.00
Number of payments to small business for
interest on overdue accounts
Nil Nil Nil Nil
Interest paid to small business on overdue
accounts
Nil Nil Nil Nil
All suppliers
Actual percentage of accounts paid on time
(based on number of accounts)
93% 98% 97% 92%
Actual percentage of accounts paid on time
(based on $)
99% 99% 98% 99%
Small business suppliers
(a)
Actual percentage of small business accounts
paid on time (based on number of accounts)
100% 100% 100% 100%
Actual percentage of small business accounts
paid on time (based on $)
100% 100% 100% 100%
a) The identification of small business suppliers is an ongoing process. Suppliers have been advised of the new policy via purchase orders
and selected identification from vendor and payment records.
Consultancies
During 2020–21, NESA engaged the following consultancies:
Denstat Solutions
Symplicit
Ernst and Young
Table 9.3 Consultants equal to or more than $50,000
Name of consultant
Title of project
Actual Cost
Ernst and Young
Assessment and Roadmap for portfolio and
program management uplift
$198,110
Ernst and Young
Operating model and organisation design
services to support Curriculum Reform delivery
$168,300
Table 9.4 Consultants worth less than $50,000
Name of consultant
Title of project
Actual Cost
Symplicit
User research to inform the development of the
new digital curriculum platform
$38,709 (including
GST)
Denstat Solutions
Professional learning framework for accredited
teachers
$49,500
NESA Annual Report 2020–21 67
Major works in progress
Table 9.5 Property, plant and equipment acquisitions, 2020–21
Property, plant and equipment
Cost ($’000)
IT network computer equipment
215
Total
215
Table 9.6 Intangible asset acquisitions, 2020–21
Intangibles
Cost ($’000)
e-TAMS
1,525
Exams System
310
Total
1,8335
NESA Financial Year 2021 Budget
NESA’s Financial Year 2021 published budget provided for total Expenditure of $171.464m, total
Revenue of $162.918m and a Net Cost of Services of $8.546m
During Financial Year 2021 NESA received additional COVID-19 related funding and supplementary
funding from the Department of Education.
FY2021 actual expenditure was withing budget and reflects work undertaken on the Curriculum Reform
and work undertaken to deal with COVID-19.
Appendix
NESA Annual Report 2020–21 69
List of Appendices
Appendix A – NESA charter ........................................................................................................ 70
Appendix B – NESA Board ......................................................................................................... 73
Appendix C – Committees of the NESA Board .......................................................................... 77
Appendix D – Obligations under the Government Information (Public Access) Act 2009 ..... 79
Appendix E – Statutory disclosure requirements ..................................................................... 83
Appendix F – NSW Aboriginal Education Consultative Group Incorporated .......................... 84
Appendix G – Knowledge management and information security........................................... 85
Appendix H – Financial statements ........................................................................................... 87
NESA Annual Report 2020–21 70
Appendix A – NESA charter
NSW Education Standards Authority Charter
1. Mission and purpose
Consistent with the National Declaration on the Educational Goals for Young Australians, the NESA
mission is to support teachers, schools and sectors to offer all children and young people a high quality
education that enables them to fulfil their potential through schooling that:
is characterised by equity and excellence
equips young Australians to become successful learners, confident and creative individuals, and
active and informed citizens
nurtures the development of the whole person, preparing students not only for undertaking
meaningful work, but for living the lives they have reason to value.
NESA provides a forum for collaboration on key educational matters in NSW. NESA works in
partnership with:
students
parents
teachers
principals
school sectors
other stakeholders
to identify issues and produce policy that supports teaching practice, student learning and the attainment
of high education standards in NSW.
2. Objectives and functions
The NESA Act sets out the principal objectives of NESA. These are to:
provide strategic leadership in improving standards of school education
promote an evidence-based approach in improving standards of school education
ensure that the quality of:
• teaching
• school curriculum
• forms of assessment
• regulatory standards under the NSW education and teaching legislation are developed,
applied and monitored in a way that improves student learning, while maintaining flexibility
across the entire school education and teaching sector.
NESA has functions under the education and teaching legislation relating to the:
accreditation of teachers and the monitoring of the accreditation process across all schools and
early childhood education centres
approval of initial and continuing teacher education courses that are relevant to the accreditation
of teachers
development, content and application of professional teaching standards
school curriculum for primary and secondary school students
granting of Records of School Achievement and Higher School Certificates
registration and accreditation of schools
approval of providers of courses at schools to overseas students, and reporting and advising on
matters relating to NESA functions and basic skills testing.
NESA Annual Report 2020–21 71
3. Standards informed by evidence
The foundations of NESA work are standards developed through the analysis of data, research and the
practical experience, wisdom and professional judgement of teachers and schools across the four
domains of:
teaching quality
curriculum
assessment
school regulation.
As an independent authority acting across school sectors, NESA identifies common and agreed
standards and benchmarks for the jurisdiction as a whole.
NESA draws on evidence nationally and internationally to implement policy that generates improvements
in the quality of teaching and student learning.
NESA draws together expertise from within the school sectors, universities and other professional
groups and promotes evidence-based analysis, teacher judgement and policy within and on behalf of the
teaching profession.
4. Values and operating principles
NESA work is underpinned by the following values and operating principles:
Supporting the profession: help to maintain and build the status of the NSW teaching profession
Educational expertise and leadership: exercise a leading role in ongoing monitoring, research
and development in teaching quality, school curriculum, assessment, and school regulation
Quality and effectiveness: implement best practice to provide high quality, efficient services that
are relevant to the interests of and respond to the needs of the New South Wales community
Accountability and transparency: actively promote community confidence in NSW education
through activities in the public interest that are ethical, sustainable and transparent
Focus on stakeholders: provide exemplary representation and service with professionalism and
commitment to our stakeholders
Productive relationships and partnerships: foster collaborative, constructive and valuable
relationships and partnerships with the school sectors and the community
Equity and inclusiveness: policies and programs are underpinned by the principles of equity and
inclusiveness and will be designed and delivered with fairness, transparency and consistency
Research, evaluation and innovation: encourage and promote innovation and creativity to
develop new strategies, ideas, products and processes
Continuous improvement: secure continuous improvement through active self-evaluation and
independent external evaluation of our work and services.
5. The Board
The Board of the NSW Education Standards Authority (the Board) is established by the NESA Act. The
Board:
provides strategic leadership in improving standards of school education
promotes an evidence-based approach to improving standards of education
ensures that each of the following matters is developed, applied and monitored in a way that
improves student learning, while maintaining flexibility across the entire school education and
teaching sector:
• teaching quality and professional standards
• school curriculum
• forms of assessment, and
NESA Annual Report 2020–21 72
• regulatory standards for schools.
The Board oversees:
high level strategic governance of NESA
regulatory functions set out in legislation
financial governance to provide direction on the alignment between resource allocation and
functions for NESA
meeting priorities set out in the Minister’s Statement of Expectations.
Board members exercise their functions in a manner that promotes the objectives of NESA.
NESA Annual Report 2020–21 73
Appendix B – NESA Board
Table B1 Membership of the Board of the NSW Education Standards Authority
Membership (outlined in NESA Act) Appointed Member
An independent person appointed by the Minister as
the Chairperson of the Board
Professor Peter Shergold AC
Six persons appointed by the Minister:
1 from the government school sector Mr Mark Scott AO, Secretary, NSW Department of
Education (appointment end March 2021)
Ms Georgina Harrisson, Secretary, NSW Department of
Education (observer since April 2021)
1 from the Catholic school sector Mr Dallas McInerney, CEO, Catholic Schools NSW
1 from the independent school sector Dr Geoff Newcombe AM, CEO, Association of Independent
Schools NSW
2 from teacher unions Mr Denis Fitzgerald, NSW Teachers Federation executive
Mr Mark Northam, Secretary, Independent Education Union
NSW (resigned January 2021)
Ms Veronica Yewdall, Independent Education Union NSW
(observer since February 2021)
1 from Aboriginal education Mr Nathan Towney, Pro-Vice Chancellor, University of
Newcastle
No less than 4 (but not more than 6) other persons
appointed by the Minister with regard to:
teachers and school leaders
universities
vocational education and training
parents of school children
early childhood education
special education
business acumen
strategic advisory skills
Ms Christine Legg, Chief Executive Officer, KU Children’s
Services
Ms Katherine Grace, General Counsel, Company
Secretary, Stockland Group
Ms Jude Hayman, Executive Principal, Connected
Communities at Nowra East Public School
Dr Anne Wenham
Mr Gary Johnson, Principal, Cherrybrook Technology High
School
Ms Jenny Allum, Head of School, SCEGGS Darlinghurst
The Chief Executive Officer (ex-officio) Mr Paul Martin, Chief Executive Officer, NESA
NESA Annual Report 2020–21 74
The appointed members are typically appointed to serve three-year terms and they are eligible (if otherwise
qualified) for re-appointment. Appointed members may not be appointed to consecutive terms totalling more
than 6 years unless the Minister determines otherwise.
The Board met on eight occasions between July 2020 and June 2021. Table B2 indicates Board members’
attendance at each meeting from 1 July 2020 to 30 June 2021.
Table B2 NESA Board meetings and attendance of members from 1 July 2020 – 30 June 2021
Member
2020
2021
4
Aug
22
Sept
27
Oct
17 Nov
(extraord)
8
Dec
23
Feb
27
April
15
June
Chairperson
Professor Peter Shergold AC
Member from the government school sector
Mr Mark Scott AO
A
n/a n/a
Ms Georgina Harrisson
(observer)
n/a n/a n/a n/a n/a n/a
Member from the catholic school sector
Mr Dallas McInerney
Member from the independent school sector
Dr Geoff Newcombe AM
A
Mr Darryl Buchannan (observer) n/a n/a n/a n/a n/a n/a n/a
Two members from teacher unions
Mr Denis Fitzgerald
Mr Mark Northam
n/a n/a n/a
Ms Veronica Yewdall (observer) n/a n/a n/a n/a n/a
A member from Aboriginal education
Mr Nathan Towney
A
Persons appointed with regard to teachers, school leaders, universities, vocational education and training
parents of school children, early childhood education, special education business acumen and strategic
advisory skills
Ms Katherine Grace
Ms Jenny Allum
Ms Jude Hayman
Mr Gary Johnson
A
Ms Christine Legg
A
Dr Anne Wenham
The Chief Executive Officer
Mr Paul Martin
Notes:
n/a indicates that this member was not a serving member of the NESA Board at the time of this meeting.
A indicates that this member was not in attendance
NESA Annual Report 2020–21 75
Governing Board of the NSW Education Standards Authority and its Committees
Appendix B provides an overview of the membership compositions of the NESA Board.
Figure B.1 Governing Board of the NSW Education Standards Authority and its Committees to 31 December 2020
Notes: In December 2020, the Minister approved the discontinuation of all current Committees of the NESA Board, effective 31 December 2020.
NESA Annual Report 2020–21 76
Figure B.2 Governing Board of the NSW Education Standards Authority and its Committees as at 1 January 2021
Notes: In December 2020, on the Board’s advice, the Minister approved the establishment of three new Committees of the Board
NESA Annual Report 2020–21 77
Appendix C – Committees of the NESA Board
NESA and its governing Board were established on 1 January 2017 under the Education Standards
Authority Act 2013 (the NESA Act). The Board sets the strategic direction for NESA and provides
guidance about the nature of the activities NESA is expected to undertake in fulfilling its functions and
executing the policy directions set by the Board and the Minister.
The NESA Act provides for:
the NESA Board to establish committees subject to the Minister’s approval
the NESA Board, once approved, to appoint members to those committees
the committees, once established, to in turn establish and appoint members of sub-
committees.
The amended Teacher Accreditation Act 2004 established one of the Board committees, the Quality
Teaching Committee (QTC), as a committee of the new Board. Therefore, its establishment did not
require Board or Ministerial approval. The QTC was discontinued effective 31 December 2020.
Table C1.1 Committees of the NESA Board to 31 December 2020
Regulatory committees Advisory committees
Assessment Committee
Curriculum Committee
Initial Teacher Education Committee
Quality Teaching Committee
School Registration Committee
COVID-19 Response Committee
Aboriginal Education Committee
Finance Committee
Special Education Committee
Table C1.2 Committees of the NESA Board from 1 January 2021
Regulatory decision-making committees Advisory committee Advisory forums
COVID-19 Response Committee
Curriculum and Credentials Committee
Registration and Accreditation Committee
Policy Advisory
Committee
Aboriginal Education Forum
Disability Education Forum
The regulatory committees exercise powers delegated by the Board and provide advice to the Board on
policy related to their delegated functions. Advisory committees and forums provide advice only. More
information, including each committee’s membership and attendance register, is available on request.
The Committees of the Board may establish relevant sub-committees, time-limited working groups or
other consultative mechanisms necessary to support the committees in fulfilling their delegated functions
and appointing members to these sub-committees.
NESA Annual Report 2020–21 78
Table C2.1 Sub-committees of committees of the NESA Board to 31 December 2020
Sub-committees of committees of the Board
Assessment Committee
HSC Standards Committee
Examination Rules Committee
Independent Appeals Committee
Curriculum Committee
Vocational Education Board Endorsed Course Panel
School Developed Board Endorsed Course Panel
University Developed Board Endorsed Course Panel
Board Endorsed Alternative Education Program Panel
Table C2.2
Sub-committees of committees of the NESA Board from 1 January 2021
Sub-committees of committees of the Board
Curriculum and Credentials Committee
HSC Standards Committee
Examination Rules Committee
Independent Appeals Committee
Vocational Education Board Endorsed Course Panel
School Developed Board Endorsed Course Panel
University Developed Board Endorsed Course Panel
Board Endorsed Alternative Education Program Panel
More information about each of the sub-committees of the committees of the NESA Board and other
committees and panels established by NESA to inform its policy development work is available on
request from NESA.
NESA Annual Report 2020–21 79
Appendix D – Obligations under the Government
Information (Public Access) Act 2009
Agency name: NSW Education Standards Authority
Principal department: Not applicable
Reporting period: 2020–21
GIPA Annual Report
Section 125 of the Government Information (Public Access) Act 2009 (GIPA Act) requires agencies to
report annually on their obligations under the GIPA Act to the Minister responsible for the agency. A copy
of the GIPA data must also be sent to the Information Commissioner.
NESA has an Agency Information Guide as required under the GIPA Act, which includes helpful
information about:
the structure and functions of NESA and how these functions affect the community
how members of the community may participate in the formulation of policy and the exercise of
NESA’s functions
various kinds of government information held by NESA, the kinds of information made publicly
available and how members of the public may access information held by NESA.
The Agency Information Guide
is available on the NESA website
Review of proactive release program – Clause 8(a)
Under section 7(3) of the GIPA Act, agencies review their programs for the release of government
information annually to identify the kinds of information that may be made publicly available. The NESA
program for proactive release of information involves the review and identification of information and
data by key stakeholders.
NESA proactively released the following information relating to identified key activities and developments
that occurred during the reporting period:
2020 HSC facts and figures;
2020 HSC merit lists (lists of students who achieved outstanding results in the HSC);
2020 Disability provisions statistics;
2020 Illness/misadventure statistics;
2020 HSC Integrity statistics (including malpractice, non-certification, non-serious attempt); and
Teacher accreditation data for FY2020-21.
Number of access applications received – Clause 8(b)
Chapter 1 During the reporting period, NESA received 13 formal access applications (including
withdrawn applications but excluding invalid applications).
Number of refused applications for Schedule 1 information – Clause 8(c)
During the reporting period, NESA refused three access applications, either wholly or partly, because the
application was for the disclosure of information referred to in Schedule 1 to the Act (information for
which there is conclusive presumption of overriding public interest against disclosure).
NESA Annual Report 2020–21 80
Statistical information about access applications – Clause 8(d) and Schedule 2
Tables D1 to D9 provide details of information access applications to NESA during 2020–21.
Table D1 Number of information access applications by type of applicant and outcome, 2020–21
Access
granted
in full
Access
granted
in part
Access
refused
in full
Information
not held
Information
already
available
Refuse to
deal with
application
Refuse to
confirm/deny
whether
information
is held
Application
withdrawn
Media 2 0 0 0 0 0 0 0
Members of
Parliament
1 0 0 0 0 0 0 1
Private sector
business
0 0 0 0 0 0 0 0
Not for profit
organisations or
community
groups
1 0 0 0 0 0 0 0
Members of
the public
(application
by legal
representative)
0 0 0 1 0 0 0 0
Members of
the public
(other)
1 5 1 1 1 0 0 0
Note: More than one decision can be made regarding a particular access application. If so, a recording must be made regarding
each such decision. This also applies to Table D2.
Table D2 Number of information access applications by type of application and outcome, 2020–21
Access
granted
in full
Access
granted
in part
Access
refused
in full
Information
not held
Information
already
available
Refuse to
deal with
application
Refuse to
confirm/deny
whether
information
is held
Application
withdrawn
Personal information
applications*
0 0 0 0 0 0 0 0
Access applications
(other than personal
information
applications)
5 4 1 2 0 0 0 1
Access applications
that are partly
personal information
applications and partly
other
0 1 0 0 1 0 0 0
*Note: A personal information application is an access application for personal information (as defined in clause 4 of
Schedule 4 to the Act) about the applicant (the applicant being an individual).
NESA Annual Report 2020–21 81
Table D3 Invalid access applications, 2020–21
Reason for invalidity
Number of applications
Application does not comply with formal requirements
(section 41 of the Act)
5
Application is for excluded information of the agency
(section 43 of the Act)
0
Application contravenes restraint order
(section 110 of the Act)
0
Total number of invalid applications received 5
Invalid applications that subsequently became valid applications 2
Table D4 Conclusive presumption of overriding public interest against disclosure: matters listed in Schedule 1
of the GIPA Act, 2020–21
Public interest consideration
Number of times consideration used
Overriding secrecy laws 1
Cabinet information 0
Executive Council information 0
Contempt 0
Legal professional privilege 0
Excluded information 0
Documents affecting law enforcement and public safety 0
Transport safety 0
Adoption 0
Care and protection of children 2
Ministerial code of conduct 0
Aboriginal and environmental heritage 0
Information about complaints to Judicial Commission 0
Information about authorised transactions under Electricity Network Assets
(Authorised Transactions) Act 2015
0
Information about authorised transaction under Land and Property Information
NSW (Authorised Transaction) Act 2016
0
Note: More than one public interest consideration may apply regarding a particular access application. If so, each such
consideration is to be recorded (but only once per application). This also applies in relation to Table D5.
Table D5 Other public interest considerations against disclosure: matters listed in table to section 14 of the
GIPA Act, 2020–21
Public interest consideration
Number of occasions when application
not successful
Responsible and effective government 5
Law enforcement and security 0
Individual rights, judicial processes and natural justice 6
Business interests of agencies and other persons 2
Environment, culture, economy and general matters 0
Secrecy provisions 2
Exempt documents under interstate Freedom of Information legislation 0
NESA Annual Report 2020–21 82
Table D6 Timeliness of decisions on access applications, 2020–21
Timing of decision
Number of applications
Decided within the statutory timeframes (20 days plus any extensions) 10
Decided after 35 days (by agreement with applicant) 2
Not decided within time (deemed refusal) 0
Total 12
Table D7 Number of applications reviewed under Part 5 of the GIPA Act (by type of review and outcome), 2020–
21
Type of review
Decision varied Decision upheld
Total
Internal review 0 0 0
Review by Information Commissioner* 0 1 1
Internal review following recommendation under
section 93 of the Act
0 0 0
Review by NSW Civil and Administrative Tribunal
(NCAT)
0 0 0
Total 0 1 1
*Note: The Information Commissioner does not have the authority to vary decisions, but can make recommendation to the
original decision-maker. The data in this case indicates that a recommendation to vary or uphold the original decision has been
made.
Table D8 Applications for review under Part 5 of the GIPA Act (by type of applicant), 2020–21
Applications for review
Number of applications
Applications by access applicants 1
Applications by persons to whom information the subject of access application relates (see
section 54 of the Act)
0
Table D9 Applications transferred to other agencies (by type of transfer), 2020–21
Transfers to other agencies
Number of applications
Agency-initiated transfers 0
Applicant-initiated transfers 0
NESA Annual Report 2020–21 83
Appendix E – Statutory disclosure requirements
Funds granted to non-government community organisations
NESA did not grant funds to non-government community organisations during FY2020-21.
Legal change
The three statutes that govern NESA’s work are the Education Standards Authority Act 2013 (NSW), the
Education Act 1990 (NSW) and the Teacher Accreditation Act 2004 (NSW), including any regulations
made under that legislation, as amended from time to time. These are referred to collectively as the
education and teaching legislation.
There was no change to the education and teaching legislation in relation to the functions of NESA
during the reporting period.
Economic/other factors affecting the achievement of operational
objectives
There were no specific economic factors affecting the achievement of objectives during FY2020-21. The
body of this report covers other factors.
Land disposal
NESA does not hold title to any land or buildings and was not involved in the disposal of land by other
agencies in FY2020-21.
Subsidiaries, partnerships, joint ventures and other associations
NESA joint ventures with other organisations are described on the inside front cover and in Sections 1–8
of this report.
Investment management performance
NESA had no investments under management during the reporting period.
Liability and management performance
NESA does not have a level of debt at or above the level determined by the Treasurer.
Additional matters
There were no additional matters arising after 30 June 2021 and prior to the submission of the annual
report that were expected to have a significant effect on the operations or clientele of NESA.
NESA Annual Report 2020–21 84
Appendix F – NSW Aboriginal Education Consultative
Group Incorporated
Mission and goals
The NSW Aboriginal Education Consultative Group Inc. (AECG) is recognised as the principal advisory
body to the NSW Government on all matters relating to Aboriginal people from preschool to higher
education.
The vision of the AECG is to:
be the political voice of Aboriginal people regarding quality education
provide advice on all matters relevant to education and training with the mandate that this advice
represents the Aboriginal community viewpoint
promote respect, empowerment, and self-determination – the AECG believes the process of
collaborative consultation is integral to equal partnership and is fundamental to the achievement of
equality
advocate cultural affirmation, integrity and the pursuit of equality to ensure that the unique and
diverse identity of Aboriginal people is recognised and valued.
The NSW AECG aims to provide opportunities for Aboriginal people to be actively involved in all
decision-making that is relevant to education and training, through a collaborative and consultative
process. This is central to developing the highest level of informed decision-making to ensure:
culturally appropriate delivery of education and training programs for Aboriginal learners and
that all Australians are better informed on Aboriginal history, culture, and relevant current issues.
Participating in committees and forums of the NESA Board
NESA is committed to working in partnership with the NSW AECG and Aboriginal communities to
support teachers, schools and schooling sectors to improve educational outcomes for Aboriginal children
and young people.
Our vision is that collaboration across all sectors and government departments will deliver continual
growth in attainment levels of Aboriginal students and greater understanding of Aboriginal and Torres
Strait Islander knowledge, histories and cultures for all students.
The NSW AECG is represented on four committees of the NESA Board: the NESA Curriculum
Committee, the Policy Advisory Committee, the Disability Education Forum and Aboriginal Education
Forum.
The NSW AECG’s representation on these committees and forums in 2020–21 provided invaluable
advice on inclusive curriculum and the implementation of Aboriginal perspectives in policy, syllabuses,
curriculum, and teaching.
Contact de
tails
NSW Aboriginal Education Consultative Group Inc.
37 Cavendish Street, Stanmore NSW 2048
Telephone: (02) 9550 5666
E
mail: i[email protected]
Website: www.aecg.nsw.edu.au
NESA Annual Report 2020–21 85
Appendix G – Knowledge management and information
security
Protection of personal information
NESA maintains a Privacy Management Plan to explain how NESA manages personal and health
information in compliance with the Privacy and Personal Information Protection Act 1998 and the Health
Records and Information Privacy Act 2002. The Privacy Management Plan:
provides information on the types of personal and health information collected by NESA
identifies the policies and strategies that NESA uses to ensure compliance with privacy legislation
provides a mechanism to allow for periodic review of NESA’s practices regarding the handling,
maintenance and security of personal and health information.
During the reporting period, NESA has implemented and promoted awareness of its privacy risk
assessment procedure among NESA employees to encourage:
greater education and awareness of the need for privacy compliance
more effective management of privacy risk.
NESA also promoted compliance with NSW privacy legislation by:
providing staff with information briefings regarding privacy obligations in the course of their
employment
participating in Privacy Awareness Week 2021 (coordinated by the Information and Privacy
Commission NSW).
During the reporting period, there was no review conducted by or on behalf of NESA under Part 5 of the
Privacy and Personal Information Protection Act 1998. A copy of the Privacy Management Plan
is
available on the NESA website.
Cloud computing
NESA continues to take a cloud first approach in line with the NSW Government Cloud Policy guidance,
to move to procuring IT as a service where possible. NESA has delivered business-critical solutions to
support a secure enterprise mail capability, enterprise collaboration, unified communications, and
mobility services.
NESA continues cloud solutions to facilitate the delivery of online assessments such as HSC Minimum
Standards tests and the first online HSC examination, Science Extension.
NESA has transitioned to a hybrid cloud in 2020 to provide flexible, scalable, and innovative solutions to
the customer.
NESA Annual Report 2020–21
86
Cyber Security Annual Attestation Statement for the 2020-2021 Financial
Year for the NSW Education Standards Authority
I, Paul
Martin, Chief Executive Officer, am of the opinion, that the NSW Education Standards Authority
have continued working towards maturity in the management of cyber security risks in a manner
consistent with the Mandatory Requirements set out in the NSW Government Cyber Security Policy.
Governance is in place to manage the cyber-security maturity and initiatives of the NSW Education
Standards Authority within the resource capacity of the Department.
Risks to the information and systems of the NSW Education Standards Authority have been assessed
and are managed.
There exists a current cyber incident response plan for the NSW Education Standards Authority which
has been reviewed and exercise conducted during the reporting period.
The NSW Education Standards Authority has an Information Security Management System (ISMS) in
place and has maintained compliance with the ISO 27001 requirements by an accredited independent
third party during the 2020-21 financial year.
The NSW Education Standards Authority has undertaken the following to continuously improve the
management of cyber security governance and resilience:
• The Information and Physical Security Committee representatives contributes to, and oversees, the
program of cyber maturity and uplift
• Annual identification of crown jewels across the Agency
The attestation covers the following agencies:
NSW Education Standards Authority
Paul Mar
tin Chief Executive Officer
1 September 2021
Appendix H – Financial statements
INDEPENDENT AUDITOR’S REPORT
NSW Education Standards Authority
To Members of the New South Wales Parliament
Opinion
I have audited the accompanying financial statements of the NSW Education Standards Authority (the
Authority), which comprise the Statement by the Accountable Authority, the Statement of
Comprehensive Income for the year ended 30 June 2021, the Statement of Financial Position as at 30
June 2021, the Statement of Changes in Equity and the Statement of Cash Flows, for the year then
ended, notes comprising a Statement of Significant Accounting Policies, and other explanatory
information.
In my opinion, the financial statements:
• has been prepared in accordance with Australian Accounting Standards and the applicable
financial reporting requirements of the Government Sector Finance Act 2018 (GSF Act), the
Government Sector Finance Regulation 2018 (GSF Regulation) and the Treasurer's Directions
• presents fairly the Authority's financial position, financial performance and cash flows.
My opinion should be read in conjunction with the rest of this report.
Basis for Opinion
I conducted my audit in accordance with Australian Auditing Standards. My responsibilities under the
standards are described in the ‘Auditor’s Responsibilities for the Audit of the Financial Statements’
section of my report.
I am independent of the Authority in accordance with the requirements of the:
• Australian Auditing Standards
• Accounting Professional and Ethical Standards Board’s APES 110 ‘Code of Ethics for
Professional Accountants (including Independence Standards)’ (APES 110).
I have fulfilled my other ethical responsibilities in accordance with APES 110.
Parliament promotes independence by ensuring the Auditor-General and the Audit Office of
New South Wales are not compromised in their roles by:
• providing that only Parliament, and not the executive government, can remove an
Auditor-General
• mandating the Auditor-General as auditor of public sector agencies
• precluding the Auditor-General from providing non-audit services.
I believe the audit evidence I have obtained is sufficient and appropriate to provide a basis for my
audit opinion.
NESA Annual Report 2020–21
87
Chief Executive Officer’s Responsibilities for the Financial Statements
The Chief Executive Officer is responsible for the preparation and fair presentation of the financial
statements in accordance with Australian Accounting Standards, the GSF Act, GSF Regulations and
Treasurer's Directions. The Chief Executive Officer's responsibility also includes such internal control
as the Chief Executive Officer determines is necessary to enable the preparation and fair presentation
of the financial statements that is free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Chief Executive Officer is responsible for assessing the
Authority’s ability to continue as a going concern, disclosing as applicable, matters related to going
concern and using the going concern basis of accounting.
Auditor’s Responsibilities for the Audit of the Financial Statements
My objectives are to:
• obtain reasonable assurance about whether the financial statements as a whole is free from
material misstatement, whether due to fraud or error
• issue an Independent Auditor’s Report including my opinion.
Reasonable assurance is a high level of assurance, but does not guarantee an audit conducted in
accordance with Australian Auditing Standards will always detect material misstatements.
Misstatements can arise from fraud or error. Misstatements are considered material if, individually or
in aggregate, they could reasonably be expected to influence the economic decisions users take
based on the financial statements.
A description of my responsibilities for the audit of the financial statements is located at the Auditing
and Assurance Standards Board website at: www.auasb.gov.au/auditors_responsibilities/ar4.pdf. The
description forms part of my auditor’s report.
The scope of my audit does not include, nor provide assurance:
• that the Authority carried out its activities effectively, efficiently and economically
• about the assumptions used in formulating the budget figures disclosed in the financial
statements
• about the security and controls over the electronic publication of the audited financial
statements on any website where it may be presented
• about any other information which may have been hyperlinked to/from the financial statements.
NESA Annual Report 2020–21 88
Jan-Michael Perez
Director, Financial Audit Services
Delegate of the Auditor-General for New South Wales
27 October 2021
SYDNEY
NSW Education Standards Authority
Year ended 30 June 2021
Statement by the Chief Executive Officer
Pursuant to the Government Sector Finance Act 2018 (GSF Act), I state that:
(a) the accompanying financial statements have been prepared in accordance with the
applicable Australian Accounting Standards, the relevant requirements of the GSF Act,
the Government Sector Finance Regulation 2018, the Public Finance and Audit
Regulation 2015, the financial reporting directions mandated by the Treasurer,
the Treasurer's Directions and other authoritative pronouncements
of the Australian Accounting Standards Board (AASB).
(b) the Statement of comprehensive income presents a true and fair view of the results of
the NSW Education Standards Authority for the year ended 30 June 2021;
(c) the Statement of financial position gives a true and fair view of the state of affairs of the
NSW Education Standards Authority as at 30 June 2021; and
(d) there are no circumstances which would render any particulars included in the financial
statements to be misleading or inaccurate.
Paul Martin
Chief Executive Officer
NSW Education Standards Authority
14 October 2021
NESA Annual Report 2020–21 89
NSW EDUCATION STANDARDS AUTHORITY
Financial Statements
30 June 2021
CONTENTS
Page No.
Statement of Comprehensive Income for the year ended 30 June 2021 2
Statement of Financial Position as at 30 June 2021 3
Statement of Changes in Equity for the year ended 30 June 2021 4
Statement of Cash Flows for the year ended 30 June 2021 5
Notes to the financial statements
1 Statement of Significant Accounting Policies 6
2 Expenses Excluding Losses 8
3 Revenue 10
4 Other Gains / (Losses) 12
5 Conditions and Restrictions on Income of Not-for-Profit Entities 12
6 Program group statements for the period ended 30 June 2021 13
7 Current Assets - Cash and Cash Equivalents 14
8 Current / Non-Current Assets - Receivables 14
9 Contract Assets and Liabilities 15
10 Current Assets - Inventories 16
11 Property, Plant and Equipment 17
12 Leases 19
13 Intangible Assets 21
14 Restricted Assets 22
15 Current Liabilities - Payables 22
16 Current / Non-Current Liabilities - Borrowings 22
17 Current / Non-Current Liabilities - Provisions 23
18 Equity 24
19 Commitments 24
20 Contingent Liabilities and Contingent Assets 24
21 Budget Review 24
22 Reconciliation of Cash Flows from Operating
Activities to Net Result 25
23 Non-cash Financing and Investing Activities 25
24 Trust Funds 25
25 Financial Instruments 26
26 Related Party Disclosures 30
27 Events after the Reporting Period 30
NESA Annual Report 2020–21 90
NSW EDUCATION STANDARDS AUTHORITY
Statement of Comprehensive Income for the year ended 30 June 2021
Actual Actual Budget Actual Actual
Consolidated Parent Consolidated Consolidated Parent
Entity Entity Entity Entity Entity
2021 2021 2021 2020 2020
Notes $'000 $'000 $'000 $'000 $'000
Expenses excluding losses
Operating expenses
Employee-related expenses 2(a) 119,674 - 135,039 116,590 -
Personnel Services 2(b) - 120,074 - - 113,813
Other operating expenses 2(c) 37,328 37,328 28,067 34,573 34,573
Depreciation and amortisation 2(d) 6,765 6,765 7,352 2,480 2,480
Finance costs 2(e) 120 120 1,006 38 38
Total expenses excluding losses 163,887 164,287 171,464 153,681 150,904
Revenue
Sale of goods and services from contracts with customers 3(a) 21,327 21,327 25,249 21,221 21,221
Investment revenue - - 212 - -
Grants and other contributions 3(b) 159,009 159,009 134,029 130,492 130,492
Acceptance by the Crown Entity of
employee benefits and other liabilities 3(c) (400) - 2,777 2,777 -
Other income 3(d) 3,210 3,210 651 3,055 3,055
Total revenue 183,146 183,546 162,918 157,545 154,768
Operating result 19,259 19,259 (8,546) 3,864 3,864
Gains / (losses) on disposal - - 10 - -
Other gains / (losses) 4 104 104 - (113) (113)
Net result 19,363 19,363 (8,536) 3,751 3,751
Other comprehensive income - - - - -
Total other comprehensive income - - - - -
TOTAL COMPREHENSIVE INCOME 19,363 19,363 (8,536) 3,751 3,751
The accompanying notes form part of these financial statements.
Page 2
NESA Annual Report 2020–21 91
Page 3
NSW EDUCATION STANDARDS AUTHORITY
Statement of Financial Position as at 30 June 2021
Actual Actual Budget Actual Actual
Consolidated Parent Consolidated Consolidated Parent
Entity Entity Entity Entity Entity
2021 2021 2021 2020 2020
Notes $'000 $'000 $'000 $'000 $'000
ASSETS
Current Assets
Cash and cash equivalents 7 40,609 40,609 8,326 14,211 14,211
Receivables 8 4,167 4,167 5,247 6,164 6,164
Contract assets 9 - - - - -
Inventories 10 566 566 596 591 591
Total Current Assets 45,342 45,342 14,169 20,966 20,966
Non-Current Assets
Receivables 8 1 1 - 2 2
Contract assets 9 - - - - -
Property, plant and equipment
- Leasehold improvements 11 1,080 1,080 929 997 997
- Plant and equipment 11 252 252 352 355 355
Total property, plant and equipment 1,332 1,332 1,281 1,352 1,352
Right-of-use assets 12 10,549 10,549 42,244 2,137 2,137
Intangible assets 13 9,550 9,550 7,583 9,068 9,068
Total Non-Current Assets 21,432 21,432 51,108 12,559 12,559
Total Assets 66,774 66,774 65,277 33,525 33,525
LIABILITIES
Current Liabilities
Payables 15 5,912 5,912 5,172 4,671 4,671
Payables - Employee related 15 1,389 - - 834 -
Payables - Personnel services 15 - 1,389 - - 834
Other 15 840 840 29 632 632
Contract liabilities 9 9,308 9,308 8,249 8,249 8,249
Borrowings 16 5,154 5,154 4,199 641 641
Provisions - Employee related 17 10,385 - 7,691 8,167 -
Provisions - Personnel services 17 - 10,385 - - 8,167
Total Current Liabilities 32,988 32,988 25,340 23,194 23,194
Non-Current Liabilities
Contract liabilities 9 - - - -
Borrowings 16 5,708 5,708 39,396 1,628 1,628
Provisions - Employee related 17 200 - 187 188 -
Provisions - Personnel services 17 - 200 - - 188
Total Non-Current Liabilities 5,908 5,908 39,583 1,816 1,816
Total Liabilities 38,896 38,896 64,923 25,010 25,010
Net Assets / (Liabilities) 27,878 27,878 354 8,515 8,515
EQUITY 18
Accumulated funds / (Losses) 27,878 27,878 354 8,515 8,515
Total Equity 27,878 27,878 354 8,515 8,515
The accompanying notes form part of these financial statements.
NESA Annual Report 2020–21 92
NSW EDUCATION STANDARDS AUTHORITY
Statement of Changes in Equity for the year ended 30 June 2021
Consolidated Entity Parent Entity
Accumulated Accumulated
Funds Total Funds Total
$'000 $'000 $'000 $'000
Balance at 1 July 2020 8,515 8,515 8,515 8,515
Net result for the year 19,363 19,363 19,363 19,363
Other comprehensive income - - - -
Total other comprehensive income - - - -
Total comprehensive income for
the year 19,363 19,363 19,363 19,363
Balance at 30 June 2021 27,878 27,878 27,878 27,878
Consolidated Entity Parent Entity
Accumulated Accumulated
Funds Total Funds Total
$'000 $'000 $'000 $'000
Balance at 1 July 2019 4,764 4,764 4,764 4,764
Net result for the year 3,751 3,751 3,751 3,751
Other comprehensive income - - - -
Total other comprehensive income - - - -
Total comprehensive income for
the year 3,751 3,751 3,751 3,751
Balance at 30 June 2020 8,515 8,515 8,515 8,515
The accompanying notes form part of these financial statements.
Page 4
NESA Annual Report 2020–21 93
Page 5
NSW EDUCATION STANDARDS AUTHORITY
Statement of Cash Flows for the year ended 30 June 2021
Actual Actual Budget Actual Actual
Consolidated Parent Consolidated Consolidated Parent
Entity Entity Entity Entity Entity
2021 2021 2021 2020 2020
Notes $'000 $'000 $'000 $'000 $'000
CASH FLOWS FROM OPERATING
ACTIVITIES
Payments
Employee related (116,455) - (132,262) (111,319) -
Personnel Services - (116,455) - - (111,319)
Suppliers for goods and services (39,807) (39,807) (28,367) (35,444) (35,444)
Finance costs (120) (120) (1,006) (38) (38)
Total Payments (156,382) (156,382) (161,636) (146,801) (146,801)
Receipts
Sale of goods and services 22,609 22,609 25,401 22,153 22,153
Interest received - - 212 - -
Grants and other contributions 159,009 159,009 134,029 127,641 127,641
Other 8,104 8,104 672 8,514 8,514
Total Receipts 189,722 189,722 160,313 158,308 158,308
NET CASH FLOWS (USED) / FROM OPERATING
ACTIVITIES 22 33,340 33,340 (1,322) 11,507 11,507
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales of property, plant and
equipment - - 30 - -
Purchase of plant and equipment and leasehold
improvements (215) (215) - - -
Purchase of intangibles assets (1,835) (1,835) - (2,173) (2,173)
Other - - (700) - -
NET CASH FLOWS FROM INVESTING
ACTIVITIES (2,050) (2,050) (670) (2,173) (2,173)
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of principal portion of lease liabilities (4,892) (4,892) (3,893) (629) (629)
NET CASH FLOWS FROM FINANCING
ACTIVITIES (4,892) (4,892) (3,893) (629) (629)
NET INCREASE / (DECREASE) IN CASH AND
CASH EQUIVALENTS 26,398 26,398 (5,885) 8,705 8,705
Opening cash and cash equivalents 14,211 14,211 14,211 5,506 5,506
CLOSING CASH AND CASH EQUIVALENTS 7 40,609 40,609 8,326 14,211 14,211
The accompanying notes form part of these financial statements.
NESA Annual Report 2020–21 94
NSW EDUCATION STANDARDS AUTHORITY
Notes to the financial statements for the year ended 30 June 2021
1 Statement of Significant Accounting Policies
(a) Reporting entity
The NSW Education Standards Authority ('NESA') is a NSW government entity and is controlled by the State of New
South Wales, which is the ultimate parent.
NESA is a not-for-profit entity (as profit is not its principal objective) and it has no cash generating units.
The reporting entity ('NESA') is consolidated as part of the NSW Total Sector Accounts.
NESA as a reporting entity comprises all the entities under its control, namely the NSW Education Standards Authority Staff Agency
('NESA Staff Agency').
All the operating activities of NESA are under the control of NESA which includes supporting the services required by the Australian
Music Examinations Board and the Aboriginal Education Consultative Group.
The NESA Staff Agency provides personnel services to NESA.
In the process of preparing the consolidated financial statements for NESA, consisting of the controlling and controlled entities,
all inter-entity transactions and balances have been eliminated.
These consolidated financial statements for the year ended 30 June 2021 have been authorised for issue by the Chief Executive
Officer on 14 October 2021.
(b) Basis of preparation
NESA's financial statements are general purpose financial statements which have been prepared on an accrual basis and in
accordance with:
- applicable Australian Accounting Standards (AAS) (which include Australian Accounting Interpretations)
- the requirements of the Government Sector Finance Act 2018 (GSF Act) and
- Treasurer's Directions issued under the GSF Act.
Property, plant and equipment and certain financial assets and liabilities are measured using the fair value basis. Other financial
statement items are prepared in accordance with the historical cost convention except where specified otherwise.
Judgments, key assumptions and estimations management has made are disclosed in the relevant notes to the financial statements.
All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency which is NESA's presentation
and functional currency.
(c) Going Concern
NESA’s financial statements have been prepared on a going concern basis, which contemplates the continuity of normal operating activity
and the realisation of assets and the settlement of liabilities in the normal course of operations.
NESA maintains careful management of cash flows with positive cash flows for the year and cash on hand and at bank
as at 30 June 2021 of $40.6m.
NESA receives a grant from the Department of Education which is sufficient to fund its ongoing operations.
The Department of Education receives appropriations from the Consolidated Fund. Appropriations for each financial year are set out in
the Appropriations Act for that year.
(d) Statement of compliance
The financial statements and notes comply with Australian Accounting Standards, which include Australian Accounting Interpretations.
(e) Accounting for the Goods and Services Tax
Income, expenses and assets are recognised net of the amount of goods and services tax (GST), except that the:
- amount of GST incurred by NESA as a purchaser that is not recoverable from the Australian Taxation Office (ATO) is
recognised as part of an asset's cost of acquisition or as part of an item of expense and
- receivables and payables are stated with the amount of GST included.
Cash flows are included in the Statement of Cash Flows on a gross basis. However, the GST components of cash flows arising from
investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.
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NESA Annual Report 2020–21 95
NSW EDUCATION STANDARDS AUTHORITY
Notes to the financial statements for the year ended 30 June 2021
(f) Foreign currency translation
Transactions in foreign currencies are recorded using the spot rate at the date the transaction first qualifies for recognition.
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the
end of the reporting date.
Differences arising on settlement or translation of monetary items are recognised in net result.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates
of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates
at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated
in line with the recognition of the gain or loss on the change in fair value of the item (i.e. translation differences on items whose fair value
gain or loss is recognised in other comprehensive income or net results are also recognised in other comprehensive income or net results,
respectively).
(g) Comparative information
Except when an AAS permits or requires otherwise, comparative information is presented in respect of the previous period for all
amounts reported in the financial statements.
(h) Changes in accounting policies, including new or revised AAS
(i) Effective for the first time in 2020-21
The application of AASB 1059 Service Concession Arrangements: Grantors did not impact NESA.
Several other amendments and interpretations apply for the first time in FY2020-21, but do not have an impact on the financial
statements of NESA.
(ii) Issued but not yet effective
NSW public sector entities are not permitted to early adopt new AAS unless Treasury determines otherwise.
The following new AAS have not been applied and are not yet effective:
AASB 17 Insurance Contracts
AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not for-Profit Tier 2 Entities
AASB 2020-1 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non-current
AASB 2020-3 Amendments to Australian Accounting Standards – Annual Improvements 2018–2020 and Other Amendments
AASB 2020-5 Amendments to Australian Accounting Standards – Insurance Contracts
AASB 2020-6 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or
Non-current – Deferral of Effective Date
AASB 2020-7 Amendments to Australian Accounting Standards – Covid-19-Related Rent Concessions: Tier 2 Disclosures
AASB 2020-8 Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform – Phase 2
AASB 2014-10 Amendments to Australian Accounting Standards: Sale or Contribution of Assets Between an Investor and
its Associate or Joint Venture
NESA has assessed that there will be no material impact in the year of initial application of these standards.
(i) Impact of COVID-19 on Financial Reporting for 2020-21
NESA has assessed the potential impact of COVID-19 on its end of year financial statements.
The following areas have been reviewed to assess possible impacts:
- Allowance for expected credit losses
- Financial instruments
- Inventories
- Superannuation and long-term provisions
- Events after the reporting date
- Going concern
- Internal control environment
- Carrying amounts of property, plant and equipment
- Working from home and technology as a solution
- Employee-related systems and processes
- Budgetary impacts
NESA continues to closely monitor the COVID-19 outbreak and has put in place regular communication mechanisms to staff
members and stakeholders to manage these impacts. This includes regular interaction with government and public health officials
at the highest levels. NESA continues to implement mitigating actions to ensure there is minimal disruption to normal operations.
Page 7
NESA Annual Report 2020–21 96
NSW EDUCATION STANDARDS AUTHORITY
Notes to the financial statements for the year ended 30 June 2021
2 Expenses Excluding Losses
Consolidated Parent Consolidated Parent
Entity Entity Entity Entity
2021 2021 2020 2020
$'000 $'000 $'000 $'000
(a) Employee related expenses
Salaries and wages (including annual leave) 1
106,011 - 99,888 -
Superannuation - defined benefit plans 258 - 441 -
Superannuation - defined contribution plans 8,074 - 7,694 -
Long service leave (733) - 2,482 -
Workers' compensation insurance 489 - 333 -
Payroll tax and fringe benefits tax 5,575 - 5,752 -
119,674 - 116,590 -
1 An amount of $1.525m (2019-20: $1.129m) for employee related expenses was capitalised during the financial year
(b) Personnel services
Personnel services - 120,074 - 113,813
- 120,074 - 113,813
(c) Other operating expenses include the following:
Auditor's remuneration
- audit of the financial statements 72 70 70
Computing expenses 6,309 6,309 5,024 5,024
Couriers 645 645 301 301
Expense relating to short-term leases 406 406 3,978 3,978
Expense relating to leases of low-value assets 834 834 796 796
Fees for services 1,603 1,603 1,131 1,131
Furniture and equipment 326 326 764 764
Insurance 269 269 32 32
Legal fees 223 223 626 626
Maintenance 1,200 * 1,200 * 1,337 * 1,337
Marking centre rental 4,408 4,408 3,617 3,617
Motor vehicles 330 330 419 419
Other contractors 1
13,579 13,579 5,762 5,762
Other expenses 1,203 1,203 1,717 1,717
Postage 574 574 654 654
Printing and publishing 1,270 1,270 2,236 2,236
Security 1,722 1,722 2,762 2,762
Staff development 432 432 224 224
Stationery and consumables 632 632 261 261
Telephones 365 365 1,084 1,084
Travel and accommodation 926 926 1,778 1,778
37,328 37,328 34,573 34,573
1 An amount of $0.310m (2019-20: $1.044m) for contractor related expenses was capitalised during the financial year
Consolidated Parent Consolidated Parent
Entity Entity Entity Entity
2021 2021 2020 2020
$'000 $'000 $'000 $'000
* Reconciliation - Total maintenance expense
Maintenance expense - contracted labour and other
(non-employee related), as above 1,200 1,200 1,337 1,337
Employee related maintenance expense included in
Note 2(a) - - - -
Total maintenance expenses included in Note 2(a) +
2(b) - - - -
* Reconciliation - Total maintenance expense 1,200 1,200 1,337 1,337
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97 NESA Annual Report 2020–21
NSW EDUCATION STANDARDS AUTHORITY
Notes to the financial statements for the year ended 30 June 2021
Recognition and Measurement
Maintenance Expense
Day-to-day servicing costs or maintenance are charged as expenses as incurred, except where they relate to the replacement or an
enhancement of a part or component of an asset, in which case the costs are capitalised and depreciated.
Insurance
NESA's insurance activities are conducted through the NSW Treasury Managed Fund Scheme of self-insurance for Government entities.
The expense (premium) is determined by the Fund Manager based on past claim experience.
Lease expense
NESA recognises the lease payments associated with the following types of leases as an expense on a straight-line basis:
- Leases that meet the definition of short-term i.e. where the lease term at commencement of the lease is
12 months or less. This excludes leases with a purchase option.
- Leases of assets that are valued at $10,000 or under when new.
Variable lease payments not included in the measurement of the lease liability (i.e. variable lease payments that
do not depend on an index or a rate, initially measured using the index or rate as at the commencement date).
These payments are recognised in the period in which the event or condition that triggers those payments occurs.
Consolidated Parent Consolidated Parent
Entity Entity Entity Entity
2021 2021 2020 2020
$'000 $'000 $'000 $'000
(d) Depreciation and amortisation expense
Depreciation
Leasehold improvements 132 132 538 538
Plant and equipment 103 103 113 113
Right-of-use assets 5,177 5,177 648 648
5,412 5,412 1,299 1,299
Amortisation
Software intangibles 1,353 1,353 1,181 1,181
1,353 1,353 1,181 1,181
Total depreciation and amortisation expense 6,765 6,765 2,480 2,480
Refer to Note 11, 12 and 13 for recognition and measurement policies on depreciation and amortisation.
Consolidated Parent Consolidated Parent
Entity Entity Entity Entity
2021 2021 2020 2020
$'000 $'000 $'000 $'000
(e) Finance costs
Interest expense from lease liabilities 120 120 38 38
Total interest expense 120 120 38 38
Recognition and Measurement
Finance costs consist of interest and other costs incurred in connection with leasing.
Finance costs are recognised as expenses in the period in which they are incurred, in
accordance with Treasury’s Mandate to not-for-profit NSW GGS entities.
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NESA Annual Report 2020–21 98
NSW EDUCATION STANDARDS AUTHORITY
Notes to the financial statements for the year ended 30 June 2021
3. Revenue
Recognition and Measurement
Income is recognised in accordance with the requirements of AASB 15 Revenue from Contracts with Customers
or AASB 1058 Income of Not-for-Profit Entities , dependent on whether there is a contract with a customer
defined by AASB 15 Revenue from Contracts with Customers . Comments regarding the accounting policies
for the recognition of income are discussed below.
(a) Sale of goods and services from contracts with
customers Consolidated Parent Consolidated Parent
Entity Entity Entity Entity
2021 2021 2020 2020
$'000 $'000 $'000 $'000
Sale of goods:
Publication and copyright fees 946 946 761 761
Subtotal of sale of goods 946 946 761 761
Rendering of services:
Higher School Certificate user charges 957 957 1,424 1,424
NAPLAN user charges 536 536 532 532
Australian Music Examination Board fees 3,007 3,007 3,140 3,140
Exhibition fees 177 177 399 399
Accreditation fees 15,391 15,391 14,623 14,623
Other 313 313 342 342
Subtotal of rendering of services 20,381 20,381 20,460 20,460
21,327 21,327 21,221 21,221
Recognition and Measurement
Sale of goods
Revenue from sale of goods is recognised as when NESA satisfies a performance obligation by transferring the
promised goods.
Type of Good Nature of Timing of Satisfaction of Revenue Recognition Policies
Performance Obligation, Including
Significant Payment Terms
Publication and copyright fees The performance obligation of Revenue from these sales is
transferring these products is recognised based on the price
typically satisfied at the point in specific in the contract and revenue
time when the products are is only recognised to the extent that
delivered to the customer. it is highly probable that a significant
Delivery in accordance with the reversal will not occur.
contract denotes acceptance by the
customer, and therefore deemed as No element of financing is deemed
the point in time when the control present as the sales are made with
is transferred to the customer. a short credit term. No volume
discount or warranty is provided
The payments are typically due 30 on the sale
days from the sale date.
Rendering of services
Revenue from rendering of services is recognised when NESA satisfies the performance obligation by delivering
the promised services.
Type of Service Nature of Timing of Satisfaction of Revenue Recognition Policies
Performance Obligation, Including
Significant Payment Terms
Higher School Certificate, The performance obligation in Revenue is recognised when the
NAPLAN, and AMEB relation to HSC, NAPLAN or services are provided and measured
user charges AMEB examinations are typically at the published prices based upon
satisfied as the services are the examination being provided.
delivered to the customer.
i.e. in the year when the student sits No significant element of financing
the exam. is deemed present as the sales are
made with a short credit term.
The payments are typically due 30
days from the sale date.
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NESA Annual Report 2020–21 99
NSW EDUCATION STANDARDS AUTHORITY
Notes to the financial statements for the year ended 30 June 2021
Accreditation fees The performance obligations in Revenue is recognised when the
relation to teacher accreditation services are provided and measured
are typically satisfied as the by the percentage of time lapsed
services are delivered to the by the reporting period end.
customer i.e. over the calendar year.
No element of financing is deemed
The payments are typically due 30 present as the sales are made with
days from the sale date. a short credit term.
Refer to Note 9 for the disclosure of the aggregate amount of the transaction price allocated to performance
obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period, and when NESA
expects to recognise the unsatisfied portion as revenue.
Consolidated Parent Consolidated Parent
Entity Entity Entity Entity
2021 2021 2020 2020
$'000 $'000 $'000 $'000
(b) Grants and Other contributions
Vocational education and training 347 347 347 347
Crown Entity Redundancy Grant - - 485 485
Department of Education 155,662 155,662 127,156 127,156
Eligibility of Accreditation Grant 973 973 978 978
Other 2,027 2,027 1,526 1,526
159,009 159,009 130,492 130,492
Recognition and Measurement
Revenue from grants with sufficiently specific performance obligations is recognised as when NESA
satisfies a performance obligation by completing the promised service, such as the development
of a specific curriculum module.
The payments are typically due 30 days from the sale date.
Revenue from these grants is recognised based on the grant amount specified in the funding
agreement/funding approval, and revenue is only recognised to the extent that it is highly probable
that a significant reversal will not occur. The grant amount is determined in advance of any work commencing.
No element of financing is deemed present as funding payments are usually received in advance or
shortly after the relevant obligation is satisfied.
Refer Note 9 for transaction price allocated to the performance obligations that have not been satisfied
at the end of the year and when it is expected to be recognised as revenue.
Income from grants without sufficiently specific performance obligations is recognised when NESA
obtains control over the granted assets (e.g. cash).
NESA receives its funding via grants from the Department of Education.
Consolidated Parent Consolidated Parent
Entity Entity Entity Entity
2021 2021 2020 2020
$'000 $'000 $'000 $'000
(c) Acceptance by the Crown in the right of New South Wales
benefits and other liabilities
The following liabilities and / or expenses have been assumed by the Crown
Entity:
Superannuation - defined benefit 258 - 441 -
Long service leave (672) - 2,312 -
Payroll tax on superannuation 14 - 24 -
(400) - 2,777 -
(d) Other income
Project Services 54 54 91 91
Insurance - - 81 81
Mark Manager 3,135 3,135 2,868 2,868
Miscellaneous 21 21 15 15
3,210 3,210 3,055 3,055
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NESA Annual Report 2020–21 100
NSW EDUCATION STANDARDS AUTHORITY
Notes to the financial statements for the year ended 30 June 2021
4. Other Gains / (Losses)
Consolidated Parent Consolidated Parent
Entity Entity Entity Entity
2021 2021 2020 2020
$'000 $'000 $'000 $'000
Impairment gains/(losses) on right-of-use assets under leases 104 104 (113) (113)
104 104 (113) (113)
Recognition and Measurement
Impairment losses on non-financial assets
Impairment losses may arise on non-financial assets held by NESA from time to time. Accounting for impairment losses
is dependent upon the individual asset (or group of assets) subject to impairment. Accounting Policies and events giving
rise to impairment losses are disclosed in the following notes:
Trade receivables and contract assets - Note 8
Property, plant and equipment - Note 11
Leases - Note 12
Intangible assets - Note 13
5. Conditions and Restrictions on Income of Not-for-Profit
Entities
The Education Standards Authority Act 2013 ('the NESA Act') at Section 15 established the Education Standards Authority Fund
('the NESA Fund') into which is to be paid all fees and charges, any appropriations and any other money payable to NESA under
the Teacher Accreditation Act 2004.
The NESA fund has a separate operating bank account. The fund had a balance of $0.127m at 30 June 2021 (2019-20: $2.144m).
The NESA Act stipulates that money held in the Fund is to be applied only for the purposes of meeting costs incurred in connection with
the accreditation of teachers under the Act and in monitoring, maintaining and developing teacher quality.
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NESA Annual Report 2020–21 101
NSW EDUCATION STANDARDS AUTHORITY
Notes to the financial statements for the year ended 30 June 2021
6. Program group statements for the year ended 30 June 2021
Program Group 1* Program Group 2* Program Group 3* Program Group 4* Total
2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
EXPENSES & INCOME $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Expenses excluding losses
Operating expenses
• Employee related 12,481 9,488 11,543 9,235 83,035 86,151 12,615 11,716 119,674 116,590
• Other operating expenses 4,323 2,085 1,792 1,378 28,006 28,436 3,207 2,674 37,328 34,573
Depreciation and amortisation 1,827 190 1,218 174 2,029 1,880 1,691 236 6,765 2,480
Finance Costs 32 3 22 3 36 28 30 4 120 38
Total expenses excluding losses 18,663 11,766 14,575 10,790 113,106 116,495 17,543 14,630 163,887 153,681
Revenue
Sale of goods and services
from contracts with customers 473 381 786 316 4,677 5,901 15,391 14,623 21,327 21,221
Grants and other contributions 18,210 12,046 15,522 8,901 100,892 95,852 24,385 13,693 159,009 130,492
Acceptance by the Crown Entity of employee
benefits and other liabilities (46) 226 (39) 220 (254) 2,052 (61) 279 (400) 2,777
Other income - - - - 3,210 3,055 - - 3,210 3,055
Total revenue 18,637 12,653 16,269 9,437 108,525 106,860 39,715 28,595 183,146 157,545
Gains / (Losses) on disposal - - - - - - - - - -
Other Gains / (Losses) 28 (7) 19 (4) 31 (93) 26 (9) 104 (113)
Net result 2 880 1,713 (1,357) (4,550) (9,728) 22,198 13,956 19,363 3,751
Other comprehensive income
Increase / (decrease) in revaluation surplus - - - - - - - - - -
Other - - - - - - - - - -
Total other comprehensive income - - - - - - - - - -
TOTAL COMPREHENSIVE INCOME 2 880 1,713 (1,357) (4,550) (9,728) 22,198 13,956 19,363 3,751
ENTITY'S ASSETS & LIABILITIES 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Current Assets
Cash and cash equivalents 4,351 1,088 3,452 998 28,708 10,758 4,097 1,367 40,609 14,211
Receivables 23 1,403 - 156 713 344 3,431 4,261 4,167 6,164
Contract assets - - - - - - - - - -
Inventories 283 295 - - 283 296 - - 566 591
Total current assets 4,657 2,786 3,452 1,154 29,705 11,398 7,528 5,628 45,342 20,966
Non-current Assets
Receivables - - - 1 1 1 - - 1 2
Contract assets - - - - - - - - -
Property, plant and equipment 139 110 129 107 924 999 140 136 1,332 1,352
Right-of-use assets 1,100 174 1,018 169 7,319 1,579 1,112 215 10,549 2,137
Intangible assets 996 469 921 469 6,626 3,286 1,007 4,844 9,550 9,068
Total non-current assets 2,235 753 2,068 746 14,870 5,865 2,259 5,195 21,432 12,559
TOTAL ASSETS 6,892 3,539 5,520 1,900 44,575 17,263 9,787 10,823 66,774 33,525
Current liabilities
Payables 947 117 947 117 4,293 2,425 1,114 2,846 7,301 5,505
Other 96 48 75 44 580 479 89 61 840 632
Contract liabilities 111 293 113 - 724 218 8,360 7,738 9,308 8,249
Borrowings 537 52 497 51 3,576 474 544 64 5,154 641
Provisions 1,083 665 1,002 647 7,205 6,035 1,095 820 10,385 8,167
Total current liabilities 2,774 1,175 2,634 859 16,378 9,631 11,202 11,529 32,988 23,194
Non-current liabilities
Contract liabilities - - - - - - - - - -
Borrowings 595 132 551 129 3,960 1,203 602 164 5,708 1,628
Provisions 21 15 19 15 138 139 22 19 200 188
Other non-current liabilities - - - - - - - - - -
Total non-current liabilities 616 147 570 144 4,098 1,342 624 183 5,908 1,816
TOTAL LIABILITIES 3,390 1,322 3,204 1,003 20,476 10,973 11,826 11,712 38,896 25,010
NET ASSETS 3,502 2,217 2,316 897 24,099 6,290 (2,039) (889) 27,878 8,515
Expenses and incomehave been allocated on an actual basis. Assets and liabilities have been allocated on an actual basis or by staffing numbers except for cash
which is not attributable.
* The names and purposes of each program group are summarised below.
Program Group Descriptions
Program Group 1: Curriculum Standards.
Objectives: This program covers providing relevant high quality syllabuses, courses and support materials that promote high standards
of primary (K-6) and secondary (Years 7-12) education for a full range of students.
Program Group 2: School Standards
Objectives: This program covers registering and accrediting non-government schools, monitoring the compliance of the government schooling
system, registering home schooling, approving course providers for students from overseas and the regulation of teacher accreditation authorities.
Program Group 3: Assessment Standards
Objectives: This program covers conducting School Certificate (SC) tests to 2011, Higher School Certificate (HSC) examinations,
Australian Music Examinations Board (AMEB) examinations, administering the Record of School Achievement (RoSA) and being the test
administration authority for the National Assessment Program for Literacy and Numeracy (NAPLAN) from 2013.
Program Group 4: Teaching Standards
Objectives: This program covers assessing the qualifications of teachers to meet the requirements for provisional or conditional accreditation.
Administration of the accreditation requirements for all teachers in NSW schools including early childhood teachers is also a part of this program.
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Notes to the financial statements for the year ended 30 June 2021
7. Current Assets - Cash and Cash Equivalents
Consolidated Parent Consolidated Parent
Entity Entity Entity Entity
2021 2021 2020 2020
$'000 $'000 $'000 $'000
Cash at bank and on hand 40,609 40,609 14,211 14,211
40,609 40,609 14,211 14,211
For the purposes of the Statement of Cash Flows, cash and cash equivalents includes cash at bank and cash on hand.
Cash and cash equivalents (per Statement of Financial
Position) 40,609 40,609 14,211 14,211
Cash and cash equivalents (per Statement of Cash Flows) 40,609 40,609 14,211 14,211
Refer to Note 25 for details regarding credit risk and market risk arising from financial instruments.
$0.127m (2019-20: $2.144m) of these balances form part of the NESA Fund and restrictions apply. See Note 14 for details.
8. Current / Non-Current Assets - Receivables
Consolidated Parent Consolidated Parent
Entity Entity Entity Entity
2021 2021 2020 2020
$'000 $'000 $'000 $'000
Trade receivables from contracts with customers 708 708 1,274 1,274
Accreditation Fees receivable 5,740 5,740 5,567 5,567
6,448 6,448 6,841 6,841
Less Allowance for expected credit losses *
- Accreditation Fees receivable (2,308) (2,308) (1,459) (1,459)
Total expected credit losses (2,308) (2,308) (1,459) (1,459)
Sundry government debtors - - 136 136
Crown Entity Redundancy Grant - - 623 623
Prepayments - Current 27 27 23 23
Prepayments - Non-Current 1 1 2 2
4,168 4,168 6,166 6,166
Consolidated Parent Consolidated Parent
Entity Entity Entity Entity
2021 2021 2020 2020
$'000 $'000 $'000 $'000
*Movement in the allowance for expected credit losses
Balance at the beginning of the year 1,459 1,459 500 500
Amounts written off during the year (145) (145) (180) (180)
Amounts recovered during the year - - - -
Increase / (decrease) in allowance recognised in net
result 994 994 1,139 1,139
Balance at the end of the year 2,308 2,308 1,459 1,459
Details regarding credit risk of trade receivables that are neither past due nor impaired,
are disclosed in Note 25.
Recognition and Measurement
All 'regular way' purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way purchases or
sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention
in the marketplace.
Receivables are initially recognised at fair value plus any directly attributable transaction costs. Trade receivables that do not contain
a significant financing component are measured at the transaction price.
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Notes to the financial statements for the year ended 30 June 2021
Subsequent measurement
NESA holds receivables with the objective to collect the contractual cash flows and therefore measures them at amortised cost using
the effective interest method, less any impairment. Changes are recognised in the net result for the year when impaired, derecognised or
through the amortisation process.
Impairment
NESA recognises an allowance for expected credit losses (ECLs) for all debt financial assets not held at fair value through profit or loss.
ECLs are based on the difference between the contractual cash flows and the cash flows that NESA expects to receive, discounted
at the original effective interest rate.
For trade receivables, NESA applies a simplified approach in calculating ECLs. NESA recognises a loss allowance based
on lifetime ECLs at each reporting date. NESA has established a provision matrix based on its historical credit loss experience
for trade receivables, adjusted for forward-looking factors specific to the receivable.
9. Contract Assets and Liabilities
Consolidated Parent Consolidated Parent
Entity Entity Entity Entity
2021 2021 2020 2020
$'000 $'000 $'000 $'000
Contract assets - current - - - -
Contract assets - non-current - - - -
Less: impairment allowance - - - -
- - - -
Contract liabilities - current 9,308 9,308 8,249 8,249
Contract liabilities - non-current - - - -
9,308 9,308 8,249 8,249
Contract receivables (included in note 8) - - - -
Recognition and Measurement
Contract assets relate to NESA's right to consideration in exchange for goods transferred to customers/works completed, but not billed at
the reporting date in respect of goods and services.
The balance of contract assets at 30 June 2021 is nil.
The contract asset balance has not changed during the year.
Contract liabilities relate to consideration received in advance from customers in respect of teacher annual accreditation fees and AMEB exams,
copyright fees and supplementary funding.
The balance of contract liabilities at 30 June 2021 has increased due to the increase of accreditation fees billed during the year.
Consolidated Parent Consolidated Parent
Entity Entity Entity Entity
2021 2021 2020 2020
$'000 $'000 $'000 $'000
Revenue recognised that was included in the
contract liability balance at the beginning
of the year 8,249 8,249 9,329 9,329
- - - -
Revenue recognised from performance
obligations satisfied in previous periods - - - -
Transaction price allocated to the remaining
performance obligations from contracts
with customers 9,308 9,308 8,249 8,249
The Transaction price allocated to the remaining performance obligations relates to annual accreditation fees, exam fees
and copyright fees.
100% is expected to be recognised as revenue in the 2021-22 financial year.
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Notes to the financial statements for the year ended 30 June 2021
10. Current Assets - Inventories
Consolidated Parent Consolidated Parent
Entity Entity Entity Entity
2021 2021 2020 2020
$'000 $'000 $'000 $'000
Held-for-distribution
Publications stock - at cost 20 20 19 19
20 20 19 19
Held-for-resale
Publications stock - at cost 546 546 572 572
546 546 572 572
566 566 591 591
A provision for obsolescence of $0.221m (2019-20: $0.238m) is included in the above amounts.
Recognition and Measurement
Inventories held for distribution are stated at cost, adjusted when applicable, for any loss of service potential. A loss of service potential
is identified and measured based on the existence of a current replacement cost that is lower than the carrying amount. Inventories
(other than those held for distribution) are stated at the lower of cost and net realisable value. Cost is calculated using the "first in first out"
method.
The cost of inventories acquired at no cost or for nominal consideration is the current replacement cost as at the date of acquisition.
Current replacement cost is the cost NESA would incur to acquire the asset. Net realisable value is the estimated selling price in the
ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
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Notes to the financial statements for the year ended 30 June 2021
11. Property, Plant and Equipment
Total property, plant and equipment
Leasehold Plant and
Improvements Equipment Total
$'000 $'000 $'000
At 1 July 2019 - fair value
Gross carrying amount 9,683 11,454 21,137
Accumulated depreciation
and impairment (8,148) (10,986) (19,134)
Net carrying amount 1,535 468 2,003
Year ended 30 June 2020
Net carrying amount at the beginning of 1,535 468 2,003
the year
Purchases of assets - - -
Disposals - - -
Depreciation expense (538) (113) (651)
Net carrying amount at end of year 997 355 1,352
At 1 July 2020 - fair value
Gross carrying amount 9,683 11,454 21,137
Accumulated depreciation
and impairment (8,686) (11,099) (19,785)
Net carrying amount 997 355 1,352
Year ended 30 June 2021
Net carrying amount at the beginning of
the year 997 355 1,352
Purchases of assets 215 - 215
Disposals - - -
Depreciation expense (132) (103) (235)
Net carrying amount at end of year 1,080 252 1,332
At 30 June 2021 - fair value
Gross carrying amount 9,898 11,454 21,352
Accumulated depreciation
and impairment (8,818) (11,202) (20,020)
Net carrying amount 1,080 252 1,332
Recognition and Measurement
Acquisition of property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently revalued at fair value less accumulated depreciation and
impairment. Cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire the asset
at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when initially recognised in accordance
with the requirements of other AAS.
Fair value is the price that would be received to sell an asset in an orderly transaction between market participants at measurement date.
Where payment for an asset is deferred beyond normal credit terms, its cost is the cash price equivalent; i.e. deferred payment amount is
effectively discounted over the period of credit.
Assets acquired at no cost, or for nominal consideration, are initially recognised at their fair value at the date of acquisition.
Capitalisation thresholds
Property, plant and equipment and intangible assets costing $5,000 and above individually (or forming part of a network costing more than
$5,000) are capitalised.
Major inspection costs
When a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the
recognition criteria are satisfied.
Restoration costs
The present value of the expected cost for the restoration or cost of dismantling of an asset after its use is included in the cost of the
respective asset if the recognition criteria for a provision are met.
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Notes to the financial statements for the year ended 30 June 2021
Depreciation of property, plant and equipment
Except for certain non-depreciable assets, depreciation is provided for on a straight line basis so as to write off the depreciable amount
of each asset as it is consumed over its useful life to NESA.
All material identifiable components of assets are depreciated separately over their useful lives.
Useful lives of each major category of depreciable assets are:
Plant and Equipment
Computer hardware 3 - 4 years
Office furniture 10-15 years
Office equipment 3 - 5 years
Motor vehicles 7 years
Plant and machinery 10 years
Right-of-use assets 3 - 5 years
Leasehold Improvements Unexpired period of the lease
Right-of-Use Assets acquired by lessees
From 1 July 2019, AASB 16 Leases (AASB 16) requires a lessee to recognise a right-of-use asset for most leases. NESA has
elected to present right-of-use assets separately on the Statement of Financial Position.
Further information on leases is contained at Note 12.
Revaluation of property, plant and equipment
Physical non-current assets are valued in accordance with the 'Valuation of Physical Non-Current Assets at Fair Value'
Policy and Guidelines Paper (TPP14-01). This policy adopts fair value in accordance with AASB 13, AASB 116
and AASB 140 Investment Property.
Property, plant and equipment is measured at the highest and best use by market participants that is physically possible, legally permissible
and financially feasible. The highest and best use must be available at a period that is not remote and take into account the characteristics
of the asset being measured, including any socio-political restrictions imposed by government. In most cases, after taking into account
these considerations, the highest and best use is the existing use. In limited circumstances, the highest and best use may be a
feasible alternative use, where there are no restrictions on use or where there is a feasible higher restricted alternative use.
Non-specialised assets with short useful lives are measured at depreciated historical cost, which for these assets approximates
fair value. NESA has assessed that any difference between fair value and depreciated historical cost is unlikely to be material.
Impairment of property, plant and equipment
As a not-for-profit entity with no cash generating units, impairment under AASB 136 Impairment of Assets is unlikely to arise. Since
property, plant and equipment is carried at fair value or an amount that approximates fair value, impairment can only arise in rare
circumstances such as where the costs of disposal are material.
NESA assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when
annual impairment testing for an asset is required, NESA estimates the asset's recoverable amount. When the carrying amount of an
asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
Specialised assets held for continuing use of their service capacity are rarely sold and their cost of disposal is typically negligible.
Their recoverable amount is expected to be materially the same as fair value, where they are regularly revalued under AASB 13.
As a not-for-profit entity, an impairment loss is recognised in the net result to the extent the impairment loss exceeds the amount in the
revaluation surplus for the class of asset.
After an impairment loss is recognised, it is reversed only if there has been a change in the assumptions used to determine the asset's
recoverable amount. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor
exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for
the asset in prior years. Such reversal is recognised in net result and is treated as a revaluation increase. However, to the extent that
an impairment loss on the same class of asset was previously recognised in net result, a reversal of that impairment loss is also
recognised in net result.
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Notes to the financial statements for the year ended 30 June 2021
12. Leases
NESA as a lessee
NESA leases various properties, equipment and motor vehicles. Lease contracts are typically made for fixed periods of one to
three years, but may have extension options. Lease terms are negotiated on an individual basis and contain a wide range of different
terms and conditions. The lease arrangements do not impose any covenants, but leased assets may not be used as security for
borrowing purposes. NESA does not provide residual value guarantees in relation to leases.
Extension and termination options are included in a number of property and equipment leases. These terms are used to maximise
operational flexibility in terms of managing contracts. The majority of extension and termination options held are exercisable only
by NESA and not by the respective lessor. In determining the lease term, management considers all facts and circumstances
that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or
periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not
terminated). Potential future cash flows have not been included in the lease liability because it is not reasonably
certain that the leases will be extended (or terminated). The assessment is reviewed if a significant event or a significant change
in circumstances occurs which affects this assessment and that is within the control of the lessee. During the current financial year,
no extension or termination options were exercised.
AASB 16 Leases (AASB 16) requires a lessee to recognise a right-of-use asset and a corresponding lease liability for most leases.
NESA has elected to recognise payments for short-term leases and low value leases as expenses on a straight-line basis, instead of
recognising a right-of-use asset and lease liability. Short-term leases are leases with a lease term of 12 months or less. Low value assets
are assets with a fair value of $10,000 or less when new and comprise mainly plant and equipment.
Right-of-use assets under leases
The following table presents right-of use assets that do not meet the definition of investment property.
Land and
Buildings Total
$'000 $'000
Balance at 1 July 2020 2,137 2,137
Additions 1 3,485 1 3,485
Depreciation expense (5,177) (5,177)
Other movements - impairment 104 104
Balance at 30 June 2021 10,549 10,549
Balance at 1 July 2019 2,898 2,898
Additions - -
Depreciation expense (648) (648)
Other movements - impairment (113) (113)
Balance at 30 June 2020 2,137 2,137
Lease liabilities
The following table presents liabilities under leases.
2021 2020
$'000 $'000
Balance at 1 July 2,269 2,898
Additions 13,589 3 8
Interest expense 120 38
Payments (5,116) (705)
Balance at 30 June 10,862 2,269
The following amounts were recognised in the statement of comprehensive income during the period in respect of leases
where NESA is the lessee:
2021 2020
$'000 $'000
Depreciation expense of right-of-use assets 5,177 648
Interest expense on lease liabilities 120 38
Expense relating to short-term leases 406 3,978
Expense relating to leases of low-value assets 834 796
Total amount recognised in the statement of
comprehensive income 6,537 5,460
NESA had total cash outflows for leases of $4.9m in FY2020-21 (FY2019-20: $5.4m).
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Notes to the financial statements for the year ended 30 June 2021
Recognition and measurement
NESA assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the
use of an identified asset for a period of time in exchange for consideration.
NESA recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets,
except for short-term leases and leases of low-value assets.
i. Right-of-use assets
NESA recognises right-of-use assets at the commencement date of the lease (i.e. the date the underlying asset is available for use).
Right-of-use assets are initially measured at the amount of initial measurement of the lease liability (refer ii below), adjusted by any
lease payments made at or before the commencement date and lease incentives, any initial direct costs incurred, and estimated costs
of dismantling and removing the asset or restoring the site.
The right-of-use assets are subsequently measured at cost. They are depreciated on a straight-line basis over the shorter of the
lease term and the estimated useful lives of the assets, as follows:
Land and buildings 3 to 5 years
If ownership of the leased asset transfers to NESA at the end of the lease term or the cost reflects the exercise of a purchase option,
depreciation is calculated using the estimated useful life of the asset.
The right-of-use assets are also subject to impairment. NESA assesses, at each reporting date, whether there is an indication
that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, NESA estimates
the asset's recoverable amount. When the carrying amount of an asset exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount. After an impairment loss has been recognised, it is reversed only if there
has been a change in the assumptions used to determine the asset's recoverable amount. The reversal is limited so that the
carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been
determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is
recognised in the net result.
ii. Lease liabilities
At the commencement date of the lease, NESA recognises lease liabilities measured at the present value of lease payments to be
made over the lease term. Lease payments include:
* fixed payments (including in substance fixed payments) less any lease incentives receivable;
* variable lease payments that depend on an index or a rate;
* amounts expected to be paid under residual value guarantees;
* exercise price of a purchase option reasonably certain to be exercised by NESA; and
* payments of penalties for terminating the lease, if the lease term reflects NESA exercising the option to terminate.
Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce
inventories) in the period in which the event or condition that triggers the payment occurs.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is
generally the case for NESA's leases, the lessee's incremental borrowing rate is used, being the rate that NESA would have
to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with
similar terms, security and conditions.
After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease
payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease
term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine
such lease payments) or a change in the assessment of an option to purchase the underlying asset.
NESA's lease liabilities are included in borrowings.
iii. Short-term leases and leases of low-value assets
NESA applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e. those leases
that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the
lease of low-value assets recognition exemption to leases of office equipment that are considered to be low value. Lease payments on
short-term leases and leases of low-value assets are recognised as expenses on a straight-line basis over the lease term.
iv. Leases that have significantly below-market terms and conditions principally to enable NESA to further its objectives
The initial and subsequent measurement of right-of-use assets under leases at significantly below-market terms and conditions
that are entered into principally to enable NESA to further its objectives is the same as normal right-of-use assets.
They are measured at cost, subject to impairment.
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Notes to the financial statements for the year ended 30 June 2021
13. Intangible Assets
Software Total
$'000 $'000
At 1 July 2019
Cost (gross carrying amount) 20,113 20,113
Accumulated amortisation and
impairment (12,037) (12,037)
Net carrying amount 8,076 8,076
Year ended 30 June 2020
Net carrying amount at beginning of
year 8,076 8,076
Additions - internal development 2,173 2,173
Amortisation (recognised in
'depreciation and amortisation') (1,181) (1,181)
Net carrying amount at end of year 9,068 9,068
At 1 July 2020
Cost (gross carrying amount) 22,286 22,286
Accumulated amortisation and
impairment (13,218) (13,218)
Net carrying amount 9,068 9,068
Year ended 30 June 2021
Net carrying amount at beginning of 9,068 9,068
year
Additions - internal development 1,835 1,835
Amortisation (recognised in
'depreciation and amortisation') (1,353) (1,353)
Net carrying amount at end of year 9,550 9,550
At 30 June 2021
Cost (gross carrying amount) 24,121 24,121
Accumulated amortisation and
impairment (14,571) (14,571)
Net carrying amount 9,550 9,550
Recognition and Measurement
NESA recognises intangible assets only if it is probable that future economic benefits will flow to NESA and the cost of the asset can
be measured reliably. Intangible assets are measured initially at cost. Where an asset is acquired at no or nominal cost, the cost is its fair
value as at the date of acquisition. Following initial recognition, intangible assets are subsequently measured at fair value only if there is an
active market. If there is no active market for NESA's intangible assets, the assets are carried at cost less any accumulated amortisation
and impairment loss.
Each year, NESA capitalises the development costs related to any new functionality added to or replaced in the two electronic
systems used by NESA. These systems are utilised in the operation of the HSC and the administration of Teacher Accreditation.
The costs are usually recognised at year end for the new functionality completed in that year.
The systems infrastructure of both systems was created in prior years.
The additional modules or replacement of functionality reflect the changing and evolving responsibilities of NESA.
The useful lives of intangible assets are assessed to be finite.
NESA’s intangible assets are amortised using the straight line method over a period of 3-10 years for software intangibles.
The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each
reporting period.
Intangible assets are tested for impairment where an indicator of impairment exists. If the recoverable amount is less than its carrying amount,
the carrying amount is reduced to recoverable amount and the reduction is recognised as an impairment loss.
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Notes to the financial statements for the year ended 30 June 2021
14. Restricted Assets
Consolidated Parent Consolidated Parent
Entity Entity Entity Entity
2021 2021 2020 2020
$'000 $'000 $'000 $'000
The NESA Fund 127 127 2,144 2,144
127 127 2,144 2,144
The Education Standards Authority Act 2013 ('the NESA Act') at Section 15 established the Education Standards Authority Fund
('the NESA Fund') into which is to be paid teacher accreditation fees.
Section 15(3) of the NESA Act stipulates that only costs incurred by NESA for the accreditation of teachers and the oversight, maintenance
and development of teacher quality are to be paid from the NESA Fund. Such costs include employee related expenses, operating
expenses and other expenditure incurred by NESA in relation to those functions under that Act.
All teacher fees and charges are deposited into the NESA fund for which a separate operating bank account is held. Interest earned from
the investment of money in the NESA Fund is reinvested in the NESA Fund.
Section 15(4) provides that NESA may invest the money held in the Fund, as applicable, either as authorised by the Government
Sector Finance Act 2018 (GSF Act) or in accordance with the Trustee Act 1925 (Trustee Act), or as approved by the Minister in
concurrence with the Treasurer.
15. Current Liabilities - Payables
Consolidated Parent Consolidated Parent
Entity Entity Entity Entity
2021 2021 2020 2020
$'000 $'000 $'000 $'000
Accrued salaries, wages and on-costs 1,389 - 834 -
Creditors 5,824 5,824 4,192 4,192
Sundry Government creditors 88 88 479 479
Relief staff costs 108 108 43 43
Personnel Services - 1,389 - 834
Other 732 732 589 589
8,141 8,141 6,137 6,137
Details regarding liquidity risk including a maturity analysis of the above payables are disclosed in Note 25.
Recognition and measurement
Payables represent liabilities for goods and services provided to NESA and other amounts. Short-term payables with no stated interest rate
are measured at the original invoice amount where the effect of discounting is immaterial.
Payables are financial liabilities at amortised cost, initially measured at fair value, net of directly attributable transaction costs. These are
subsequently measured at amortised cost using the effective interest method. Gains and losses are recognised in net result when the
liabilities are derecognised as well as through the amortisation process.
16. Current / Non-Current Liabilities - Borrowings
Consolidated Parent Consolidated Parent
Entity Entity Entity Entity
2021 2021 2020 2020
$'000 $'000 $'000 $'000
Lease liabilities - current (see Note 12) 5,154 5,154 641 641
Lease liabilities - non-current (see Note 12) 5,708 5,708 1,628 1,628
10,862 10,862 2,269 2,269
Details regarding liquidity risk, including a maturity analysis of the above payables are disclosed in Note 25.
Recognition and measurement
Borrowing represents lease liabilities.
Financial liabilities at amortised cost
Borrowings classified as financial liabilities at amortised cost are initially measured at fair value, net of directly attributable transaction
costs. These are subsequently measured at amortised cost using the effective interest method. Gains and losses are recognised
in net result when the liabilities are derecognised as well as through the amortisation process.
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Notes to the financial statements for the year ended 30 June 2021
17. Current / Non-Current Liabilities - Provisions
Consolidated Parent Consolidated Parent
Entity Entity Entity Entity
2021 2021 2020 2020
$'000 $'000 $'000 $'000
Current
Current provisions expected to be settled within 12 months
Employee benefits and related on-costs
Annual leave 3,639 - 1,499 -
Long service leave on-costs 2,018 - 2,156 -
Redundancies 1,873 - 446 -
7,530 - 4,101 -
Personnel Services - 7,530 - 4,101
- 7,530 - 4,101
Current provisions expected to be settled beyond 12 months
Annual leave 2,855 - 4,066 -
2,855 - 4,066 -
Personnel Services - 2,855 - 4,066
- 2,855 - 4,066
Total provisions - current
10,385 10,385 8,167 8,167
Non-current
Employee benefits and related on-costs
Long service leave on-costs 200 - 188 -
200 - 188 -
Personnel Services - 200 - 188
- 200 - 188
Total provisions - non-current
200 200 188 188
Aggregate employee benefits and related
on-costs
Provisions - current 10,385 - 8,167 -
Provisions - non current 200 - 188 -
Accrued salaries, wages and on-costs (Note 15) 1,389 - 834 -
11,974 - 9,189 -
Recognition and Measurement
Employee benefits and related on-costs
Salaries and wages, annual leave and sick leave
Salaries and wages (including non-monetary benefits), and paid sick leave that are expected to be settled wholly within 12 months after the
end of the period in which the employees render the service are recognised and measured at the undiscounted amounts of the benefit.
Annual leave is not expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees
render the related service. As such, it is required to be measured at present value in accordance with AASB 119 Employee Benefits
(although short-cut methods are permitted).
Actuarial advice obtained by Treasury has confirmed that using the nominal annual leave balance plus the annual leave entitlements
accrued while taking annual leave (calculated using 8.4% of the nominal value of annual leave) can be used to approximate
the present value of the annual leave liability. NESA has assessed the actuarial advice based on NESA's circumstances and has
determined that the effect of discounting is immaterial to annual leave. All annual leave is classified as a current liability even where NESA
does not expect to settle the liability within 12 months as NESA does not have an unconditional right to defer settlement.
Unused non-vesting sick leave does not give rise to a liability as it is not considered probable that sick leave taken in the future will be greater
than the benefits accrued in the future.
Long service leave and superannuation
NESA's liabilities for long service leave and defined benefit superannuation are assumed by the Crown Entity. NESA accounts for
the liability as having been extinguished, resulting in the amount assumed being shown as part of the non-monetary revenue item described
as "Acceptance by the Crown Entity of employee benefits and other liabilities".
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Notes to the financial statements for the year ended 30 June 2021
Long service leave is measured at the present value of expected future payments to be made in respect of services provided up to the
reporting date. Consideration is given to certain factors based on actuarial review, including expected future wage and salary levels,
experience of employee departures, and periods of service. Expected future payments are discounted using the Commonwealth government
bond rate at the reporting date.
The superannuation expense for the financial year is determined by using the formulae specified in the Treasurer's Directions. The expense
for certain superannuation schemes (i.e. Basic Benefit and First State Super) is calculated as a percentage of the employees' salary. For
other superannuation schemes (i.e. State Superannuation Scheme and State Authorities Superannuation Scheme), the expense is
calculated as a multiple of the employees' superannuation contributions.
Consequential on-costs
Consequential costs to employment are recognised as liabilities and expenses where the employee benefits to which they relate have been
recognised. This includes outstanding amounts of payroll tax, workers' compensation insurance premiums and fringe benefits tax.
18. Equity
Recognition and Measurement
Accumulated Funds
The category 'Accumulated Funds' includes all current and prior period retained funds.
19. Commitments
At balance date there was no capital expenditure for the acquisition of goods and services contracted for and not provided.
20. Contingent Liabilities and Contingent Assets
NESA is unaware of any contingent liabilities existing as at 30 June 2021 (2019-20: Nil).
NESA is unaware of any contingent assets existing as at 30 June 2021 (2019-20: Nil).
21. Budget Review
The budgeted amounts are drawn from the original budgeted financial statements presented to Parliament in respect of the reporting
period. Subsequent amendments to the original budget (e.g. adjustment for transfer of functions between entities as a result of
Administrative Arrangements Orders) are not reflected in the budgeted amounts. Major variances between the original budgeted
amounts and the actual amounts disclosed in the financial statements are explained below.
Net result
The actual net result was $27.9m favourable to budget for the financial year. The variance includes higher revenues of $20.3m
as well as lower expenses of $7.6m.
The $7.6m budget variance in expenses is primarily attributable to the following:
- employee-related expenses are $15.4m lower than budget primarily due to pauses in
recruitment following a restructure and the timing of project commencement
- operating expenses are $9.3m higher than budget primarily due to the use of contingent labour
and COVID-19 related expenditure
- depreciation and amortisation expenses are $0.6m lower than budget primarily due to the
timing in the renewal of leases relating to right-of-use assets.
- finance costs are $0.9m lower than budget primarily due to the timning of lease renewals
The $20.3m budget variance in revenue is primarily attributable to the following:
- additional funding received from the NSW Department of Education in order to enable ongoing core activities.
- the impact of actuarial adjustments on staff entitlements
Assets and liabilities
Total assets have increased by $1.5m against budget for the financial year, primarily due to the following:
- increased cash balances resulting from additional funding received
- delays in the timing of expenditure arising from the impact of COVID-19 and budgetary considerations.
- less than budgeted expenditure on right of use assets associated with lease of premises
- increases in intangible assets arising from the capitalisation of work undertaken on the electronic Teacher
Accreditation Management System (e-TAMS) and the Examination system.
Total liabilities have decreased by $26m against budget, primarily due to the following:
- lower than budgeted expenditure associated with Right of Use Asset borrowings
Cash flows
Closing cash and cash equivalents are $32m higher than budget primarily due to the timing of additional
funding received from the Department of Education and decreased expenditure associated with recruitment.
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Notes to the financial statements for the year ended 30 June 2021
22. Reconciliation of Cash Flows from Operating Activities to
Net Result
Reconciliation of cash flows from operating activities to the net result as
reported in the Statement of Comprehensive Income as follows:
Consolidated Parent Consolidated Parent
Entity Entity Entity Entity
2021 2021 2020 2020
$'000 $'000 $'000 $'000
Net cash flows (used) / from operating activities 33,340 33,340 11,507 11,507
Depreciation and amortisation expense (6,765) (6,765) (2,480) (2,480)
Allowance for impairment (744) (744) (1,071) (1,071)
Decrease / (increase) in provisions (2,231) (2,231) (1,528) (1,528)
Increase / (decrease) in prepayments and other assets (1,174) (1,174) (3,927) (3,927)
Decrease / (increase) in payables (2,004) (2,004) 9,499 9,499
Decrease / (increase) in contract liabilities (1,059) (1,059) (8,249) (8,249)
Net result 19,363 19,363 3,751 3,751
23. Non-cash Financing and Investing Activities
Consolidated Parent Consolidated Parent
Entity Entity Entity Entity
2021 2021 2020 2020
$'000 $'000 $'000 $'000
Liabilities and expenses assumed by the Crown in the
right of New South Wales (400) - 2,777 -
(400) - 2,777 -
24. Trust Funds
NESA holds monies donated for the Brother John Taylor Memorial Trust ($35,452) and for the Mary Besley Biology Teachers award ($674).
The Brother John Taylor Memorial Trust recognises a HSC student who has overcome significant disadvantage to achieve academic
excellence. The Mary Besley Biology Teachers award recognises outstanding achievement in Biology. Interest earned from the
investment of these assets is used to provide cash awards to the recipients.
As NESA performs only a custodial role in respect of these monies, and because the monies cannot be used for the achievement of
NESA's own objectives, these funds are not recognised in the financial statements. The following is a summary of the transactions in
the trust accounts:
Consolidated Parent Consolidated Parent
Entity Entity Entity Entity
2021 2021 2020 2020
$'000 $'000 $'000 $'000
Cash balance at the beginning of the financial year 37 37 36 36
Add: Receipts 4 4 4 4
Less: Expenditure 5 5 3 3
Cash balance at the end of the financial year 36 36 37 37
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NESA Annual Report 2020–21 114
NSW EDUCATION STANDARDS AUTHORITY
Notes to the financial statements for the year ended 30 June 2021
25. Financial Instruments
NESA's principal financial instruments are outlined below. These financial instruments arise directly from NESA's operations
or are required to finance NESA's operations. NESA does not enter into or trade financial instruments, including
derivative financial instruments, for speculative purposes.
NESA's main risks arising from financial instruments are outlined below, together with NESA's objectives, policies and processes
for measuring and managing risk. Further quantitative and qualitative disclosures are included throughout these financial
statements.
The Chief Executive Officer has overall responsibility for the establishment and oversight of risk management and reviews and agrees
policies for managing each of these risks. Risk management policies are established to identify and analyse the risks faced by NESA,
to set risk limits and controls and to monitor risks. Compliance with policies is reviewed by NESA on a continuous basis.
(a) Financial instrument categories
Carrying Carrying Carrying Carrying
Amount Amount Amount Amount
Consolidated Parent Consolidated Parent
Entity Entity Entity Entity
2021 2021 2020 2020
Class Note Category $'000 $'000 $'000 $'000
Financial Assets
Cash and cash equivalents 7 Amortised cost 40,609 40,609 14,211 14,211
Receivables * 8 Amortised cost 4,140 4,140 5,381 5,381
Contract assets ** 9 - - - -
Financial Liabilities
Payables *** 15
Financial liabilities measured at
amortised cost 7,321 7,321 5,070 5,070
Borrowings - lease liabilities 16
Financial liabilities measured at
amortised cost 10,862 10,862 2,269 2,269
Notes
* Excludes statutory receivables and prepayments (i.e. not within the scope of AASB 7)
** While contract assets are also not financial assets, they are explicitly included in the scope
of AASB7 for the purpose of the credit risk disclosures.
*** Excludes statutory payables and unearned revenue (i.e. not within the scope of AASB 7)
NESA determines the classification of its financial assets and liabilities after initial recognition and, when allowed and appropriate,
re-evaluates this at each financial year end.
(b) Derecognition of financial assets and financial liabilities
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when the
contractual rights to the cash flows from the financial assets expire; or if NESA transfers its rights to receive cash flows from the asset or
has assumed an obligation to pay the received cash flows in full without material delay to a third party under a 'pass-through' arrangement;
and either:
- NESA has transferred substantially all the risks and rewards of the asset; or
- NESA has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control.
When NESA has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if,
and to what extent, it has retained the risks and rewards of ownership. Where NESA has neither transferred or retained substantially all
the risks and rewards or transferred control, the asset continues to be recognised to the extent of NESA's continuing involvement in the
asset. In that case, NESA also recognises an associated liability. The transferred asset and the associated liability are measured on a
basis that reflects the rights and obligations that NESA has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount
of the asset and the maximum amount of consideration that NESA could be required to repay.
A financial liability is derecognised when the obligation specified in the contract is discharged or cancelled or expires. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a
new liability. The difference in the respective carrying amounts is recognised in the net result.
(c) Offsetting financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the Statement of Financial Position if there is a currently
enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle
the liabilities simultaneously.
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NSW EDUCATION STANDARDS AUTHORITY
Notes to the financial statements for the year ended 30 June 2021
(d) Financial risks
i Credit Risk
Credit risk arises when there is the possibility that the counterparty will default on their contractual obligations, resulting in a financial
loss to NESA. The maximum exposure to credit risk is generally represented by the carrying amount of the financial assets
(net of any allowance for credit losses or allowance for impairment).
Credit risk arises from the financial assets of NESA, including cash and receivables. No collateral is held by NESA. NESA has
not granted any financial guarantees.
Credit risk associated with NESA's financial assets, other than receivables, is managed through the selection of counterparties
and establishment of minimum credit rating standards.
NESA considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases,
NESA may also consider a financial asset to be in default when internal or external information indicates that NESA is unlikely
to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by NESA.
Cash and cash equivalents
Cash comprises cash on hand and bank balances within the NSW Treasury Banking System.
Accounting policy for impairment of trade receivables and other financial assets
Receivables - fees receivable
Accreditation fees receivable are recognised as amounts receivable at balance date.
Collectability of fees is reviewed on an ongoing basis. Procedures as established in the Treasurer’s Directions are followed to recover
outstanding amounts, including letters of demand. NESA develops a schedule for fee collections each year. A series of reminders are
sent using different methods of communication after the due date. The reminders are followed by accreditation suspension.
NESA applies the AASB 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss
for all fee receivables.
To measure the expected credit losses, fee receivables have been grouped based on shared credit risk characteristics
and the days past due.
The expected loss rates are based on historical observed loss rates. The historical loss rates are adjusted to reflect current
and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables.
NESA has identified the GDP and the unemployment rate to be the most relevant factors, and accordingly adjusts
the historical loss rates based on expected changes in these factors.
NESA is exposed to a concentration of credit risk as all debtors in this category are teachers working in NSW.
This exposure is deemed to be material ($5.368m).
The debtors of NESA represent a large number of individual teachers whose particular credit ratings will vary and are unknown to NESA.
Fee receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable
expectation of recovery include, amongst others a failure to make contractual payments for a period of greater than 90 days past due.
An allowance for loss is raised when there is objective evidence that NESA will not be able to collect amounts due.
This evidence includes past experience and current expected changes to the accreditation process that generates the collection of fees.
No interest is charged. Accreditation fees are usually billed on 30 day terms.
The loss allowance for fees receivables as at 30 June 2021 and 2020 was determined as follows:
30 June 2021
$000
30-60 61-90 >91 Total
Current <30 days days days days
Expected credit loss rate 0% 0% 0% 0% 43%
Estimated total gross
carrying amount at default 36 - 24 2 5,305 5,368
Expected credit loss - - - - 2,308 2,308
30 June 2020
$000
30-60 61-90 >91 Total
Current <30 days days days days
Expected credit loss rate 0% 0% 0% 0% 28%
Estimated total gross
carrying amount at default 4 8 2 1 5,185 5,200
Expected credit loss - - - - 1,459 1,459
Notes: the analysis excludes statutory receivables, prepayments, as these are not within the scope of AASB 7.
Therefore, the 'total' will not reconcile to the receivables total in Note 8 and the contract assets total in Note 9.
Page 27
NESA Annual Report 2020–21 116
NSW EDUCATION STANDARDS AUTHORITY
Notes to the financial statements for the year ended 30 June 2021
Receivables - trade receivables
Collectability of trade receivables is reviewed on an ongoing basis. Procedures as established in the Treasurer’s Directions are
followed to recover outstanding amounts, including letters of demand. NESA reviews trade receivables on a quarterly basis. A
series of reminders and letters of demand are sent. Non-payment results in write-backs as per debt collection policy.
NESA applies the AASB 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss
allowance for all trade receivables.
To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics
and the days past due.
The expected loss rates are based on historical observed loss rates. The historical loss rates are adjusted to reflect current
and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables.
NESA has identified the GDP and the unemployment rate to be the most relevant factors, and accordingly adjusts
the historical loss rates based on expected changes in these factors.
Trade receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable
expectation of recovery include, amongst others a failure to make contractual payments for a period of greater than 90 days
past due.
The loss allowance for trade receivables as at 30 June 2021 and 2020 was determined as follows:
30 June 2021
$000
30-60 61-90 >91 Total
Current <30 days days days days
Expected credit loss rate 0% 0% 0% 0% 0%
Estimated total gross
carrying amount 329 69 87 66 158 7 09
Expected credit loss - - - - - -
30 June 2020
$000
30-60 61-90 >91 Total
Current <30 days days days days
Expected credit loss rate 0% 0% 0% 0% 0%
Estimated total gross
carrying amount 1,266 65 6 1 55 1,393
Expected credit loss - - - - - -
Notes: the analysis excludes statutory receivables, prepayments, as these are not within the scope of AASB 7.
Therefore, the 'total' will not reconcile to the receivables total in Note 8 and the contract assets total in Note 9.
NESA is not materially exposed to concentrations of credit risk to a single trade debtor or group of debtors
as at 30 June 2021 and 2020.
ii Liquidity risk
Liquidity risk is the risk that NESA will be unable to meet its payment obligations when they fall due. NESA continuously
manages risk through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid
assets. The objective is to maintain a balance between continuity of funding and flexibility through the use of overdrafts, loans
and other advances. Liquidity risk is assessed as low.
During the current and prior year there were no defaults on payment obligations. No assets have been pledged as collateral.
NESA's exposure to liquidity risk is deemed insignificant based on prior periods' data and current assessment of risk.
Liabilities are recognised for amounts due to be paid in the future for goods or services received, whether or not invoiced. Amounts
owing to suppliers (which are unsecured) are settled in accordance with the policy set out in NSW TC 11-12. For small business suppliers,
where terms are not specified, payment is made not later than 30 days from date of receipt of a correctly rendered invoice. For other
suppliers, if trade terms are not specified, payment is made not later than the end of the month following the month in which an invoice or
a statement is received. During the COVID-19 pandemic NESA has adopted NSW Treasury's Faster Payment scheme, paying suppliers
and contractors as quickly as possible.
For small business suppliers, where payment is not made within the specified time period, simple interest must be
paid automatically unless an existing contract specifies otherwise. For payments to other suppliers, the Chief Executive Officer (or a
person appointed by the Chief Executive Officer) may automatically pay the supplier simple interest.
During the year no penalty interest payments were made.
P
age 28
NESA Annual Report 2020–21 117
NSW EDUCATION STANDARDS AUTHORITY
Notes to the financial statements for the year ended 30 June 2021
The table below summarises the maturity profile of NESA's financial liabilities based on contractual undiscounted payments, together
with the interest rate exposure.
Interest rate exposure Maturity dates
Weighted
Average Fixed Variable Non-
Effective Nominal Interest Interest interest
Int. Rate
Amount 1
Rate Rate bearing < 1 year 1-5 years
% $'000 $'000 $'000 $'000 $'000 $'000
2021
Payables * - 7,321 - - 6,983 - -
Borrowings - Lease Liabilities 1.41 10,862 5,154 5,708
2020
Payables ** - 5,070 - - 5,070 - -
Borrowings - Lease Liabilities 1.41 2,269 641 1,628
Notes:
*. The amounts disclosed are the contractual undiscounted cash flows of each class of financial liabilities based on the earliest date
on which NESA can be required to pay. These amounts include both interest and principal cash flows and therefore will not reconcile
to the amounts in the Statement of Financial position.
**. The amounts disclosed here exclude statutory payables and unearned revenue (not within scope of AASB7).
iii Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices.
NESA's exposures to market risk are primarily through interest rate risk on NESA's borrowings. NESA has no exposure to foreign
currency risk and does not enter into commodity contracts.
The effect on profit and equity due to a reasonably possible change in risk variable is outlined in the information below, for interest rate
risk and other price risk. A reasonably possible change in risk variable has been determined after taking into account the economic
environment in which NESA operates and the time frame for the assessment (i.e. until the end of the next annual reporting period).
The sensitivity analysis is based on risk exposures in existence at the Statement of Financial Position reporting date. The analysis
is performed on the same basis as for 2020. The analysis assumes that all other variables remain constant.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rates.
NESA has minimal exposure to interest rate risk from its holdings in interest bearing financial assets.
NESA does not account for any fixed rate financial instruments at fair value through profit or loss or at fair value through
other comprehensive income. Therefore, for these financial instruments, a change in interest rates would not affect the carrying value or interest paid/earned.
A reasonably possible change of +/- 1% is used, consistent with current trends in interest rates (based on official RBA interest rate volatility
over the last five years). The basis will be reviewed annually and amended where there is a structural change in the level of interest rate volatility.
The following table demonstrates the sensitivity to a reasonably possible change in interest rates:
2021 2020
$'000 $'000
-1% +1% -1% +1%
Net Result (194) 194 (38) 38
Equity (279) 279 (85) 85
(e) Fair value measurement
i. Fair value compared to carrying amount
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value measurement is based on the presumption that the transaction
to sell the asset or transfer the liability takes place either in the principal market for the asset or liability or in the absence of a
principal market, in the most advantageous market for the asset or liability.
Page 29
NESA Annual Report 2020–21 118
NSW EDUCATION STANDARDS AUTHORITY
Notes to the financial statements for the year ended 30 June 2021
26. Related Party Disclosures
NESA's key management personnel compensation paid and payable are
as follows:
Consolidated Parent Consolidated Parent
Entity Entity Entity Entity
2021 2021 2020 2020
$'000 $'000 $'000 $'000
Salaries 5,139 5,139 5,525 5,525
Other monetary allowances 147 147 263 263
Non-monetary benefits - - - -
Other long-term employee benefits - - - -
Post-employment benefits - - - -
Termination benefits 1,447 1 ,447 648 648
Total remuneration 6,733 6,733 5,979 5,979
NESA entered into no transactions with key management personnel, their close family members or their controlled entities or jointly
controlled entities.
NESA entered into transactions with other entities that are controlled by NSW Government. These transactions in aggregate are a
significant portion of NESA's revenue.
During the year NESA transacted with the following NSW government agencies:
Department of Education (Recurrent and capital grant funding and fees for services)
The Crown in the right of New South Wales (Long service leave, defined benefit superannuation and payroll tax assumed)
Revenue NSW (Payroll Tax)
NSW Self Insurance Corporation (SiCorp) (Insurance)
Property and Development NSW (Property rentals)
The Crown Solicitor (Legal fees)
The Audit Office of NSW (Financial audit)
27. Events after the Reporting Period
NESA is not aware of any events after the financial year that have material impacts on the financial statements for the
year ended 30 June 2021.
NESA continues to closely monitor, in consultation with NSW Treasury and the Department of Education, the developing
COVID-19 situation and the impact it will have upon NESA's operations in 2021-22
End of audited financial statements
Page 30
NESA Annual Report 2020–21 119
NESA Annual Report 2020–21 120
Acronyms and abbreviations
AASE Australian Association of Special Education
AM Member of the Order of Australia
ACER Australian Council for Educational Research
AECG Aboriginal Education Consultative Group
AHPPC Australian Health Protection Principal Committee
AISNSW Association of Independent Schools of New South Wales
AITSL Australian Institute of Teaching and School Leadership
AMEB Australian Music Examinations Board
CEO Chief Executive Officer
CEC Content Endorsed Course
CSNSW Catholic Schools NSW
COAG Council of Australian Governments
DDA Disability Discrimination Act 1992
ECA Early Childhood Australia
ECEC Early Childhood Education and Care
eTAMS Electronic Teacher Accreditation Management System
FASSA Fellow of the Academy of Social Sciences
FRSN Fellow of Royal Society of NSW
FTE Full-Time Equivalent
GIPA Act Government Information (Public Access) Act 2009
HALT Highly Accomplished and Lead Teacher
HALT Policy Highly Accomplished and Lead Teacher Accreditation Policy
HSC Higher School Certificate
HSCG Home Schooling Consultative Group
IEU Independent Education Union
ISMS Information Security Management System
ISO International Organization for Standardisation
ITE Initial Teacher Education
LANTITE Literacy and Numeracy Test for Initial Teacher Education Students
LMS Learning Management System
MRG Mandatory Reporter Guide
NAPLAN National Assessment Program – Literacy and Numeracy
NCAT NSW Civil and Administrative Tribunal
NESA NSW Education Standards Authority
NESA Act Education Standards Authority Act 2013
NGS Super Non-Government Schools Superannuation Fund
NSW New South Wales
OCG NSW Office of the Children’s Guardian
PD Professional Development
PD Policy Accreditation of Professional Development Courses Policy
PFA Act Public Finance and Audit Act 1983
PMES People Matter Employee Survey
PSSE Public Service Senior Executive
QTC Quality Teaching Committee
RAP Reconciliation Action Plan
RoSA Record of School Achievement
RRMP Rural and Remote Marking Program (HSC)
SDBEC School Developed Board Endorsed Course
TA Act Teacher Accreditation Act 2004
NESA Annual Report 2020–21 121
TAA Teacher Accreditation Authority
TAFE Technical and Further Education
TENs Teacher Expert Networks
The Act Education Act 1990
VET Vocational Education and Training
WWCC Working With Children Check
NESA Annual Report 2020–21 122
List of tables and figures
Tables
Table 1.1 Members of the NSW Education Standards Authority Executive during the 2020–21 reporting
year....................................................................................................................................................................18
Table 2.1 Number of teachers whose accreditation was revoked or suspended for misconduct (under section 24 and/or
25a of the Teacher Accreditation Act 2004) during 2020-21.............................................................................34
Table 2.2 Number of teachers whose accreditation was revoked or suspended for not obtaining a Working with Children
Check clearance (under section 25A of the Teacher Accreditation Act 2004) during 2020-21. These cases are
not misconduct matters......................................................................................................................................35
Table 2.3 Number of teachers whose accreditation was revoked or suspended for not paying their teacher accreditation
fees (under section 25 and Section 24 of the Teacher Accreditation Act 2004) during 2020-
21.......................................................................................................................................................................35
Table 2.4 Number of teachers whose accreditation was revoked or suspended for failure to maintain their accreditation
(under section 24 of the Teacher Accreditation Act 2004) during 2020-
21.......................................................................................................................................................................35
Table 2.5 Number of teachers who applied to voluntarily cancel their accreditation (under section 25E of the Teacher
Accreditation Act 2004) during 2020-21.............................................................................................................36
Table 3.1 NESA Registration and Accreditation Committee recommendations on school registrations, during 2017–18 to
2020–21.............................................................................................................................................................39
Table 3.2 NESA Registration and Accreditation Committee recommendations on accreditation, recognition for schools
outside NSW and other matters during 2017–18 to 2020–21............................................................................40
Table 3.3 New schools granted initial registration in 2020 to commence in the 2021 calendar
year………………………………………………………………………………………………………………………..42
Table 3.4 New Teacher Accreditation Authorities granted initial approval to commence
in 2020-21..........................................................................................................................................................42
Table 3.5 Schools closed during 2020–21.........................................................................................................................42
Table 3.6 Teacher Accreditation Authorities closed during 2020-21..................................................................................43
Table 3.7 Complaints about non-government schools investigated by NESA officers during 2017–18 to 2020–
21.......................................................................................................................................................................43
Table 3.8 Number of children with home schooling registration at the end of reporting period, during 2017–18 to 2020–
21.......................................................................................................................................................................45
Table 3.9 Number of children with exemption from home schooling registration at the end of reporting period, during 2017–
18 to 2020–21....................................................................................................................................................45
Table 7.1 Distribution of NESA staff by category, 30 June 2019 to 30 June 2021............................................................56
Table 7.2 Number of NESA Public Service senior executives, by gender and band level, at 30 June
2020 and 30 June 2021......................................................................................................................................57
Table 7.3 Average total remuneration for NESA Public Service senior executives per band at 30
June 2020 and 30 June 2021............................................................................................................................58
Table 7.4 Trends in representation of workforce diversity groups in NESA, 2019–20 to 2020–
21.......................................................................................................................................................................58
Table 7.5 Trends in distribution of workforce diversity groups in NESA, 2018–19 to 2020–21.........................................59
Table 9.1 Time for payment of accounts, 2020-21………………………………………………………………………….….. 65
Table 9.2 Details of accounts due or paid within each quarter, 2020-21……………………………………………….……..65
Table 9.3 Consultants equal to or more than $50,000………………………………………………………………………..…66
Table 9.4 Consultants worth less than $50,000………………………………………………………………………………….66
NESA Annual Report 2020–21 123
Table 9.5 Property, plant and equipment acquisitions, 2020-21 ……………………………………………………….……...67
Table 9.6 Intangible asset acquisitions, 2020-21 ………………………………………………………………………………..67
Table B1 Membership of the Board of the NSW Education Standards Authority.............................................................73
Table B2 NESA Board meetings and attendance of members from 1 July 2020 – 30 June
2021...................................................................................................................................................................74
Table C1.1 Committees of the NESA Board to 31 December 2020.....................................................................................77
Table C1.2 Committees of the NESA Board from 1 January 2021......................................................................................77
Table C2.1 Sub-committees of committees of the NESA Board and other NESA committees and
panels to 31 December 2020.............................................................................................................................78
Table C2.2 Sub-committees of committees of the NESA Board and other NESA committees and
panels from 1 January 2021...............................................................................................................................78
Table D1 Number of information access applications by type of applicant and outcome, 2020–21…………………...…. 80
Table D2 Number of information access applications by type of application and outcome, 2020–21……………………. 80
Table D3 Invalid access applications, 2020–21…………………………………………………………………………….…... 81
Table D4 Conclusive presumption of overriding public interest against disclosure: matters listed in Schedule 1 of the GIPA
Act, 2020–21…………………………………………………………………………….............................................81
Table D5 Other public interest considerations against disclosure: matters listed in table to section 14 of the GIPA Act,
2020–21………………………………………………………………………………………………………..……...... 81
Table D6 Timeliness of decisions on access applications, 2020–21……………………………………………….....……... 82
Table D7 Number of applications reviewed under Part 5 of the GIPA Act (by type of review and outcome), 2020–
21……………………………………………………………………………………………….……………………..…. 82
Table D8 Applications for review under Part 5 of the GIPA Act (by type of applicant), 2020–21…….……………………. 82
Table D9 Applications transferred to other agencies (by type of transfer), 2020–21………………………………….……. 82
Figures
Figure 1.1 NSW Education Standards Authority organisational structure (at 30 June 2021)…..........................................17
Figure 1.2 Key statistics relating to NESA’s response to the COVID-19 pandemic (in 2020–21)………………………..……..19
Figure 2.1 NESA quality teaching activity – key statistics 2020–21....................................................................................29
Figure 2.2 Teacher accreditation key statistics, 2020-21....................................................................................................33
Figure 2.3 Professional learning key statistics, 2020-21.....................................................................................................34
Figure 3.1 NESA school registration 2020–21 inspection program, key statistics..............................................................38
Figure 5.1 NESA activity related to the 2020 Higher School Certificate.............................................................................49
Figure 5.2 HSC results services key statistics, 2020-21.....................................................................................................50
Figure 5.3 Record of School Achievement key statistics, 2020..........................................................................................52
Figure 5.4 NAPLAN key statistics, 2021.............................................................................................................................52
Figure 5.5 AMEB administration statistics, 2020–21..........................................................................................................53
Figure 5.6 AMEB award statistics, 2020–21.......................................................................................................................53
Figure B.1 Governing Board of the NSW Education Standards Authority and its Committees to 31
December 2020.................................................................................................................................................75
Figure B.2 Governing Board of the NSW Education Standards Authority and its Committees as at
1 January 2021.................................................................................................................................................76
NESA Annual Report 2020–21 124
Compliance checklist
Requirement
Page
Access 127
Aims and objectives 8-10
Additional matters 83
Budgets 67
Charter 70-72
Consultants 66
Consumer response 54-55
Cyber Security Policy (CSP) attestation 86
Disclosure of controlled entities 83
Economic/other factors affecting the achievement of operational objectives 83
Financial statements 87-119
Funds granted to non-government community organisations 83
Government Information (Public Access) Act 2009 80-82
Human resources 56-61
Identification of audited financial statements 87
Internal audit and risk management policy attestation 64
Investment performance 83
Land disposal 83
Legal change 83
Letter of submission 2
Liability and management performance 83
Management and activities 19-61
Management and structure 10-18
NESA Annual Report 2020–21 125
Requirement
Page
Major works in progress 67
Multicultural policies and services program 58
Numbers and remuneration of senior executives 59-60
Payment of accounts 65-66
Privacy and Personal Information Protection Act 85-86
Production costs 127
Promotion 54
Public interest disclosures 79-82
Research and development 19-66
Recreation leave and extended leave liability 61
Risk management and insurance activities 62-64
Summary review of operations 8-71
Website address 127
Work health and safety 60
Workforce diversity 59-60
NESA Annual Report 2020–21 126
Index
Aboriginal education, 25
Acronyms and abbreviations, 120
Audit and risk management, 62
Australian Music Examinations Board (NSW), 53
Board, 10, 73
Charter, 8, 70
Code of Ethics and Conduct, 61
Committees of the NESA Board, 77
Compliance checklist, 124
Consultancies, 66
COIVD-19, 19
Digital information security annual attestation
statement, 86
Financial management, 65
Financial statements, 87
Government Information (Public Access) Act
2009, 79
Higher School Certificate, 50
Home schooling, 44
Human resources, 56
Information security management, 85
Initial teacher education, 24
Multicultural policies and services, 59
National Assessment Program – Literacy and
Numeracy (NAPLAN), 52
Organisational structure, 17
Overseas travel, 53
Payment of accounts, 65
Professional learning, 30, 33
Protection of personal information, 85
Public Service Senior Executive (PSSE), 57
Record of School Achievement, 52
Recreation leave and extended leave liability, 61
School Curriculum, 22, 46
School registration and accreditation, 37, 54
Staffing and recruitment, 56
Stakeholder engagement, 54
Statement of Expectations, 22
Statutory disclosure requirements, 83
Student assessment, 49
Sub-committees of committees of the NESA
Board, 78
Teacher Accreditation, 30
Vocational education and training, 46
Work health and safety, 60
NSW Education Standards Authority
© 2021 NSW Education Standards Authority for and on behalf of the Crown in right of the State of
New South Wales.
This document contains Material prepared by the NSW Education Standards Authority (NESA) for
and on behalf of the Crown in right of the State of New South Wales. The Material is protected by
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NESA did not incur any external costs in the production of the 2020-21 Annual Report.
