Agenda item

This report is a summary of recent issues arising in relation to St Mary’s Catholic Primary School.

Dave McNamara, Assistant Director of Finance and Resources- Environment and Children Services, introduced the report, which set out measures taken with regards to the nil assurance audit received by St Mary’s Primary School reviewed by the Committee at its last meeting. He said that, following the substantial assurance gained at its previous audit in 2007, and that the Schools Finance team had assumed that the issues they had observed were a result of the instability that came with the changes in Headteachers at the school. He said that considerable work had been done by the school to ensure that the audit’s recommendations were implemented, but that investigations into the circumstances behind the audit had not yet completed.

The report also set out new measures to be introduced following the report’s findings- firstly, that where a school changed head, an audit would be carried out to give assurance (where the school had not been audited in the previous 12 months), and secondly, that Children’s Services would hold quarterly meetings with the Audit service to identify which schools were of most concern.

In response to a question from Councillor Iggulden as to why the issues had not been detected and what steps would be taken to prevent a similar problem in the future, Dave McNamara said that the Schools Finance team had regular contact with schools, and had an overview of returns and reconciliations where they related to Council funds. However, where transactions related to school holdings (as in the case of money raised by voluntary aided schools), and were not entered into the financial system as recommended by the Council, irregularities in those accounts would be difficult to detect.

In response to Councillor Botterill and Cartwright, who suggested that this was a cause of vulnerability, Dave McNamara agreed that this was an area of vulnerability for voluntary aided schools,

The Chairman asked if the Council issued a code of best practice on schools finance. Geoff Drake, Chief Internal Auditor, said that the school presented a complex case, and the investigation of that case would identify further lessons to be learnt, which would be shared with schools and Governing Bodies. There was also Department of Education guidance on the matter.

Councillor Murphy asked whether the Council should not be more proactive in encouraging best practice in its schools. Jane West said that, where accounts were not connected to funds for which the Council was responsible, the Diocese should be taking a large degree of responsibility.

In response to a question from Sheela Selvajothy regarding responsibility for school accounts, Dave McNamara said that all schools were discouraged from giving their Governors signing authority, given the limited sanctions against them.

Eugenie White expressed concerns that schools governors were generally ill-equipped to make judgements on school finances, particularly given the quality of comparative management information. She suggested that this was an area that the Schools Finance Service could aim to provide more training and information on.

The Chairman said that the Committee would like further assurance in this area, and suggested that officers report back to it later in the year on the progress of the investigation at St Mary’s, the detailed implementation of the measures proposed and information on disseminating best practice to schools and governors.

RESOLVED THAT

(i)                 The report be noted, and;

(ii)               That officers be requested to submit a further report to a future meeting of the Committee, as detailed above.