NSW answers questions on Childcare & Economic Opportunity Fund

As the New South Wales Government progresses the Childcare and Economic Opportunity Fund Bill 2022 through its legislative assembly additional details on how the fund is expected to be governed has been provided by the NSW Department of Education. 

 

Governance is the term used to describe how an entity is controlled and operated but also how the mechanisms by which those who administer it are held to account. 

 

Given the fund is expected to disburse as much as $865 million over the course of four years, the framework as to how taxpayer’s funds are safeguarded and distributed is essential. 

 

The following are the key highlights regarding governance included in the Department’s update:

 

A special deposits deposits account (SDA) will be established for fund monies

 

A special deposit account (SDA) means the funds will be separately identified, with expenditure permissible only on the things that are clearly within the scope and purpose of the legislation.

 

The SDA will have a publicly transparent disbursement process, with clearly delineated approval by ministerial, board and departmental officers enshrined in legislation. 

 

Periodic reporting and evaluation requirements will enhance accountability for the performance of the Fund.

 

A Board will be established to oversee the Childcare and Economic Opportunity Fund 

 

Establishing a Board reflects best practice grants administration governance frameworks and will be comprised of 5 members to be appointed by the Minister with the concurrence of the Treasurer:

 

• the NSW Department of Education Secretary or delegate (Chair)

 

• the NSW Treasury Secretary or delegate

 

• Three additional members, with at least one employed in the Department of Education; and any members external to government to be selected based on their expertise, as prescribed by the regulations.

 

The update confirmed that the NSW Government will release detailed guidelines for accessing the Fund after consultation with the sector.