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The Auditor-General has raised concerns over money mismanagement at several schools and highlighted seven facing serious financial difficulty.
Controller and Auditor-General John Ryan highlighted issues of “sensitive expenditure”, spending which could be seen as giving private benefits to staff additional to the benefits for the schools.
Concerns about sensitive expenditure were raised with Palmerston North Boys’ High School, Nga Purapura o Te Aroha, Southern Cross Campus and Shotover Primary School.
Ryan said of sensitive expenditure: “This is spending that contributes to educational outcomes for students and is made transparently and with proper authority.”
The board of trustees for Palmerston North Boys’ High bought $31,201 worth of gift cards for school staff and parents who voluntarily coached and helped with school sports.
Ryan’s report read: “The school did not keep adequate records to justify the spending on gift cards, the spending was not consistent with the school’s gift policy, and there was no evidence of board approval for the purchase of the gift cards.
“There were also no details of the recipients for most of the gift cards given out,” he said.
“All school spending should be for a justifiable business purpose, be made in keeping with the board’s policy, and be adequately documented.”
Auditor-General of New Zealand John Ryan. Photo / Mark Mitchell
The board of trustees for Nga Purapura o Te Aroha, meanwhile, spent $3600 on a gift for the principal for his 10 years of service.
“Any spending on gifts using public money should be moderate, conservative, and appropriate for the circumstances,” Ryan’s report said.
“Although the gift was approved by the board, the kura (school) does not have a gift policy and the amount spent was considered relatively high for a school.”
The board of Southern Cross Campus gave out $15,000 worth of gift vouchers to families during the 2022 Covid-19 lockdown to support those in financial hardship.
“All spending by schools should have a justifiable business purpose consistent with the school’s objectives,” Ryan reiterated.
“Although the school had records of the families that received the vouchers, the auditor could not obtain adequate evidence to verify the criteria used for allocating the vouchers, so was unable to establish that the expenditure was directly linked to an educational purpose.”
Finally, the board of trustees at Shotover Primary School donated to the Shotover Primary School Foundation.
“As the Foundation is not a public organisation, it is not appropriate for the school to donate money to the Foundation,” Ryan said.
“Because the school does not have any control over how the funds are spent, there is no guarantee that the school will receive a direct benefit from those funds.”
On the seven schools facing financial difficulty, Ryan’s report listed Fraser High School in Hamilton; Matipo Road School in Auckland; Nelson College; Ngakonui Valley School in Taumarunui; Ross Intermediate in Palmerston North; Verran Primary School, Auckland; and Wyndham Primary School in Southland.
“When we have assessed that a school is in financial difficulty, we ask the Ministry of Education whether it will continue to support that school,” Ryan’s report read.
Raphael Franks is an Auckland-based reporter who covers breaking news. He joined the Herald as a Te Rito cadet in 2022.
