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The Catholic sector stressed its desire to continue to offer low-cost alternatives to public and independent schools, even in more prosperous areas where parents could pay more. CECV`s view of the VRQA is quite problematic. My report describes the role of the Victorian Registration and Qualifications Authority (VRQA) and the minimum standards that all schools must meet for registration. It is also important to note that, in the course of the audit, it was clear that the role of the AQVR would be examined, but only with respect to how DET interacts with it when it comes to grants. This approach was appropriate, as only the TED plays a role in the management, supervision and monitoring of grants. While most schools were able to demonstrate that the grants had been spent or committed in the fiscal year for which they were received, they were unable to provide sufficient evidence through books and invoices that the funds had been spent as budgeted. Note: These figures exclude grants for SWDs within the FAM, as these funds must be allocated to SWD and are paid separately. These figures also exclude grants to the CCSC for two non-systemic Catholic special schools, as these funds are paid directly to these schools, so there is no redeployment by the CCSC. The five highest combined socio-economic levels of secondary schools whose funding is not subject to the redistributive formula of the CECV are also excluded. With these exclusions, the data cover $400.8 million in FAM grants for all other Catholic schools in Victoria in 2014. Non-governmental schools receive funding from a number of sources, including the Australian and Victorian government and student fees. The Victorian government funds non-governmental schools through a series of non-competitive grants. In 2014, the state provided more than $640 million in grants to the non-governmental school sector.

Subsidies are awarded for both general and specific purposes. The majority of government subsidies (over $624 million in 2014) are provided in the form of recurrent public subsidies (GIS). This is a relatively small share of public funding for non-governmental schools, as recurrent Australian government grants are more than three times greater than public subsidies.