The Public Accounts Committee has said the Department for Education (DfE) needs to improve its understanding of poor financial management in schools. The report states that the committee is alarmed at the worrying expenditure of some schools.
There is particular criticism of “very high salaries” being paid to some senior staff in some academies. They also don’t like the “excessive” expense accounts of some governors.
The issue raised is one that we have seen over and over again for at least 15 years – and in what follows I express my own views. (Indeed if you have been reading my comments for a while you might recognise my old hobby horse.)
We have seen a combination of government pushing through independence programmes without ensuring that every school has the controls and training to ensure that they not only know how to handle finances in a school but also how to spot warning signs and problems that do arise.
In the few high-profile cases we have seen of wholesale abuse of school finances or complete collapse of the school’s finances, it has invariably been the case that either the few who raised concern were told they were being “too negative” or that no one was checking at all.
Indeed, in some cases governors have signed off woefully inadequate accounts, Ofsted have given the school a good bill of health for its financial systems, and everyone has believed everything is working well.
While the vast majority of schools do the job properly, don’t pay excessive salaries or expenses, and have proper checks and balances, there are a few where modern accounting procedures, checks and balances are simply not set up.
Labour MP Margaret Hodge, who chairs the committee, said, “One in four Local authorities have cut their resources devoted to monitoring school spending. Many governing bodies remain too weak with one in four local authorities stating that only a few of their primary schools enjoyed governing bodies with sufficient, appropriate financial expertise.
“And there is a question mark over whether the Education Funding Agency will have the capacity and skilled staff to oversee the growing number of academies.
“We are already seeing instances where the Agency’s systems have proved insufficiently robust to ensure proper value for money of schools’ expenditure.”
Chris Keates, general secretary of NASUWT, “The Secretary of State recklessly has swept aside key financial safeguards, including abolishing financial management standards, removing the requirement for schools to secure best value for public money and diminishing the role of local authorities in securing good financial management practices in schools.”
Christine Blower, general secretary of the National Union of Teachers, argued that academies should be made subject to the same financial reporting framework as maintained schools.
In a statement the government said that it was doing all it could.
Tony Attwood
School of Educational Administration