Examines whether the Department of Education & Training (DET), non-government schools and their system administrators are effectively and efficiently managing and using grants.

Non-government schools provide education to around 334 000 Victorian school children, which represents around 37 per cent of all Victorian students. These schools operate in two ways—through system authorities, that manage multiple schools, and as independent, non-systemic schools. They are diverse in nature, serving a range of different communities. They may provide religious or values-based education, or be based on educational philosophies or different interpretations of mainstream education.

Non-government schools receive funds from a range of sources, including the Australian and Victorian governments and student fees. The Victorian Government funds non-government schools through a range of non-competitive grants. In 2014, the state provided over $640 million in grants to the non-government school sector. Grants are provided for both general and specific purposes. The bulk of state government grants (over $624 million in 2014) are provided as state recurrent grants (SRG). This is a relatively minor share of government funding for nongovernment schools, since recurrent Australian Government grants are more than three times greater than state government grants.

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