BGA Capital Grants Program Newsletter No. 8

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1 bga BGA Capital Grants Program Newsletter No. 8 November 2015 The Association of Independent Schools of New South Wales Limited Level 12, 99 York Street Sydney NSW 2000 Phone (02) Fax (02) Web ais@aisnsw.edu.au ABN Contents 2015 Applications...1 Capital Works and Equipment Grants Supporting Students with a Disability Application Round...2 Recognition Requirements...3 Conflict of Interest and Related Parties...4 Latest on Leases...4 BGA Team Applications Following the initial submissions of Expressions of Interest (EOI) from more than 70 schools, this year s main round of Capital Grants Program (CGP) applications attracted a similar number of applicants to the previous year with 51 submissions for projects valued at almost $100m. Applicants sought funding support totalling $36.5m. As for the 2014 round, schools were required to submit a comprehensive package of documentation to support their submission. This included the school s Master Plan, General Purpose Financial Statements, site plans, proposed facilities plan with drawings, evidence to support the proposed project cost, evidence of preliminary discussions with Council and a copy of the school s lease, if appropriate. As the competition for funds is strong, the BGA strives to ensure a level playing field and has been lifting the standard of documentation required to ensure all projects can be assessed fairly. Generally we are satisfied with the quality of the documentation, and we provide feedback to individual schools where we feel the quality could be improved in future years. The assessment process is rigorous and assessment team members liaise with schools to capture any additional information or clarify information provided in order to ensure that they have a comprehensive and clear understanding of the project and the school s need for it from both an educational and financial perspective. All eligible projects are then subjected to a rigorous and in-depth financial assessment using both the data submitted in the school s application and the audited general purpose financial statements. Recommendations stemming from the assessment process were reviewed by the Capital Grants Appraisal Panel, the Quality Assurance Committee and, finally, the AIS Board before being submitted to the Commonwealth and State education departments for consideration by their respective ministers. Projects at 38 schools with total grants of $25,383,960 were recommended for funding to support projects valued at $71m. Grants ranged from $60,000 to $950,000. Maximum grant amounts were 1

2 slightly higher than those that have been available in previous years due to additional funding from the NSW Government. Once again schools in metropolitan and regional areas were equally supported and this year only one school recommended for a grant had an SES rating above 103. Final approval from the Commonwealth has now been received and we anticipate the State Government s approval in late November or early December, Capital Works and Equipment Grants Supporting Students with a Disability The cessation of Targeted Programs at the end of 2013 saw the end of funding under the Capital Works and Equipment component of that program. No alternate source of funding was available for the small projects that schools are often required to complete to provide full and equitable access to the school and/or the school s programs for students with a disability. Last year the BGA instituted an additional application round, under the Capital Grants Program, specifically to address the provision of smaller grants to improve access to school for students with a disability. Demand was high demonstrating an unmet need for additional support to schools. To continue to address some of this need, the BGA Board approved an allocation of funds from this year s Capital Grants Program for the specific purposes of improving the learning outcomes for targeted students with disabilities, and providing supplementary support to assist schools improve the access and participation of targeted students with disabilities. This year, nearly 70 applications were received for projects totalling over $3m of works. Assessment and prioritisation of the submissions identified 17 projects that were recommended to the Commonwealth for funding support of $800,000 for minor capital works. A further seven projects were allocated grants totalling over $70,000 for capital equipment to support the needs of targeted students Application Round a) Expressions of Interest Schools will be required to lodge an EOI if they wish to participate in next year s application round. All NSW BGA participants will be notified when the process commences later this year. In 2016, the EOI will again be an intrinsic part of the application process as it will form the first page of the 2016 application form. If your school intends to apply for a Capital Grant in the 2016 round, an EOI must be lodged which includes the following: 1. A brief description of the project 2. The approximate project cost and the basis for that cost estimate 3. The anticipated school contribution to the project 4. The grant amount requested 5. Timing/summary of progress towards a Development Application if one is required The objective of the EOI process is to provide confidence to schools that their proposed project meets Government CGP eligibility criteria, and to provide feedback and guide expectations on the levels of government funding that can be realistically expected under the program. Where the BGA has concerns about a school s project based on the information in its EOI, it will contact the school to discuss the details. Otherwise, a school can assume that their project has progressed to the application stage. For schools applying in the 2016 round, the BGA expects that, should they be successful in their application, they will be in a position to commit to their project that is, sign a legally binding contract with the builder before the end of b) Mandatory Briefing Session i. The briefing session for 2016 applications will be held at the AIS Conference Centre from 9:00am 10:00am on Wednesday, 10th February Click HERE to register your attendance. There is no charge for this session. Attendance at the briefing session is mandatory if you intend to apply for a grant in the 2016 round. Schools not attending the briefing may not be provided with access to the main section of the online Capital Grant application form for ii. For those schools recently approved for a grant from the 2015 round, there will be a mandatory briefing session following the session above, commencing at 10:00am. During this session we will briefly describe the funding agreement, and outline each school s obligations concerning commitment, tendering and record-keeping. This session is also mandatory, and there is no charge. Click HERE to register your attendance. 2

3 BGA Capital Grants Program Newsletter c) Important Dates for 2016 Date Early December 2015 (TBC) Activity Expressions of Interest available online 10 th February 2016 Mandatory CGP briefing session 10 th February 2016 Online applications open for those who attended the briefing session 2 nd May 2016 Online applications close# May 2016 Application non-financial assessments commence 31 st May 2016 Closing date for submission of 2015 audited and signed General Purpose Financial Statements June 2016 Application financial assessments commence 20 th August 2016 Capital Grants Appraisal Panel reviews recommendations 6 th September 2016 Quality Assurance Committee reviews recommendations 20 th September 2016 Recommendations presented to AIS Board for endorsement and submission to DET/DE 30 th September 2016 Recommendations submitted to DET/DE 30 th September Schools notified by BGA of in-principle recommendations Nov 2016 Jan 2017 Schools notified by Government or BGA of outcome of application when recommendations are approved # includes submission of all mandatory documentation (except 2015 signed General Purpose Financial Statements) d) Supporting Documentation It is a requirement of the submission process that you submit/upload the following documents with your application on or before the due date of 2 nd May 2016: School Facility Master Plan that identifies and describes the relationship between the current facilities, future development and future enrolment growth. Refer to the How to Develop a School Master Plan here for detailed information about developing and documenting your plan. Audited and signed General Purpose Financial Statements for the 12 months ending 31 st December 2013 (new requirement) Strategic cash flow for the five year period A site plan of the school showing all buildings and where the proposed facility is located Project costings that have been validated by a qualified third party professional Evidence that the school has commenced discussions with the relevant planning authority regarding this project or that planning permissions are already in place Annotated architectural plans for the proposed facility An annotated site plan of the school s existing facilities also highlighting where the project will be located A valid insurance Certificate of Currency covering loss or damage to the school s facilities In addition, the school s audited and signed General Purpose Financial Statements for 2015 are required to be submitted/uploaded to the application before 31 st May Recognition Requirements Requirements for recognition of capital projects built with government assistance vary depending on whether the grant is provided by the Commonwealth or State Government. Your Participant (Capital Funding) Agreement with the BGA will identify the source of your government funding. a) Capital Grants Program (Australian Government Department of Education and Training) As a minimum, the BGA participant must: i. arrange an official opening ceremony of the funded facilities within seven months of the physical completion of the approved project where the Commonwealth has contributed funding of $100,000 or more, unless otherwise agreed by the Commonwealth; 3

4 ii. advise the BGA and the Department, via of possible dates - outside of Parliamentary sitting days, for any forthcoming school recognition ceremonies well in advance of the planned event; iii. invite the Commonwealth Minister or the Minister s representative to attend all official openings of the approved project; iv. acknowledge the Commonwealth s funding in all announcements and other publicity of the approved project; v. install a building plaque on the completed project, irrespective of its cost, which acknowledges Commonwealth funding, unless otherwise agreed by the Commonwealth; and, vi. ensure that school communities are advised directly about assistance received from the Commonwealth by such means as school newsletters. b) Building Grants Assistance Scheme (NSW Department of Education) i. The NSW minister reserves the right to attend or have a representative attend if an opening is held; ii. A project with an estimated total value of $500,000 or more will be required to display NSW MAKING IT HAPPEN branding signage during construction. Specifications and further information relating to the requirements will be provided in the Participant (Capital Funding) Agreement with the BGA. Conflict of Interest and Related Parties In October 2014 the NSW Parliament passed amendments to the NSW Education Act, which clearly state that financial assistance is not to be provided to schools that are judged to be operating for profit. Particularly relevant for the Capital Grants Program is Section 83C, which prohibits payments to directors in connection with their activities as members of the governing body of a school, beyond reasonable reimbursement for out-of-pocket expenses. The amendments build on the longstanding requirement that non-government schools in receipt of public funding must be not-for-profit and that all moneys are used only for the operations of the school. Recent amendments to the BOSTES school registration processes complement these changes and require that responsible persons of a non-government school do not engage in situations that lead to a conflict of interest or involve a related party transaction. An example may be where land the school rents is owned by Directors of the school board. Schools must have documented procedures in place to record declarations relating to any conflict of interest and must maintain a register of all related party transactions, which will be subject to audit. The new measures aim to strengthen the existing rules around conditions for government funding, making it harder for operators to run a school as a profit-making business or to divert school funds to other individuals or entities. Latest on Leases Schools that are located on leased property and that intend to apply for a grant in 2016 may be required to provide additional information about their lease arrangements. This may include: a copy of the current lease, which confirms the rental, length of the lease and the basis of any cost increases; a copy of the commercial valuation of the school site; and, evidence that the school Board has met to discuss and has endorsed the terms of the lease (for example, a copy of minutes of the relevant Board meeting). The BGA will scrutinise the lease documentation to ensure that no conflict of interest exists in the school s lease arrangements. The Commonwealth s Operating Manual provides for schools operating on leased premises to apply for a grant for a project, provided that the lease has at least a term commensurate with the potential repayment period should the school cease to provide primary/secondary education within the Designated Use Period. The calculation of the Designated Use Period and the repayment period is directly related to the size of any grant approved. 4

5 BGA Team David Buley Chief Financial Officer CGP and TTC/TSC Program Director Wendy Godden Assistant Director - Grants Management wgodden@aisnsw.edu.au Michelle Hayman Grants Administrator mhayman@aisnsw.edu.au Monica Agassi Accountant/Financial Analyst magassi@aisnsw.edu.au Hamidee Hanna Accountant/Financial Analyst hsassine@aisnsw.edu.au Phone: (02) Fax: (02) Website: The Association of Independent Schools of New South Wales Limited 5