More than 700 projects that public schools will pay for with their own fundraising money are stuck in a backlog in the NSW Department of Education, with some schools waiting more than a year for approval to spend their money on much-needed upgrades.

A new NSW Auditor-General's report on sharing school and community facilities says there are "significant delays" in approving $56 million worth of projects that schools will pay for themselves with money raised through leasing their playgrounds and classrooms to community groups.

Bondi Public School runs markets every weekend which raise revenue for projects. Credit:Fiona Morris

Many NSW schools make significant money through allowing yoga classes, farmers' markets, church meetings and before or after-school care to use their buildings and playgrounds. Education Minister Rob Stokes is keen for more sharing of community assets.

The latest figures show Lane Cove West Public made $412,634 in 2016, followed by Bondi Beach Public ($360,351), Randwick Public ($269,094) and Glebe ($246,634).