School audit report reveals two schools spent thousands on outgoing principals

The Auditor-General has found two schools splashed out several thousand dollars on gifts and a leaving do for outgoing principals.

The 2021 nationwide schools audit found Waiuku College spent $1527 on a gift and $6909 on leaving ceremonies to farewell its former principal.

“The board also used funds that were originally raised for a kapa haka trip,” the report said.

“The farewell gift exceeded the school’s gift policy, and the amount spent for the leaving ceremonies was relatively high for a school.”

The report said spending public money on farewells and retirements should be moderate, conservative, and appropriate.

A presiding member of the Waiuku College board, Peter Attwood, told Stuff it accepted the findings and had put in appropriate processes to ensure that such expenditure did not occur in the future.

The report also revealed Holcombe School had spent $5070 on leaving gifts for its former principal.

“Although the board approved the gifts, the school does not have a gift policy and the total amount spent was considered relatively high for a school.”

Both schools have been approached by the Herald for comment.

Other issues highlighted in the report included two schools claiming money through the wage subsidy scheme they were not eligible for and 19 schools being in financial difficulty.

On the financial health of schools, the audit found schools had more cash available and increased working capital, but there were more schools that recorded a deficit.

“Overall, there were about the same number of schools in financial difficulty this year compared to last year.”

As well as this, the nationwide audit found that non-compliance with the Holidays Act had been ongoing for several years.

“The impact on thousands of current and former school employees who might have been incorrectly paid over many years is concerning. Progressing the remediation payments needs to be a high priority.”

Preparing and reporting full budgets was also highlighted as a problem for schools.

“Having a full budget, including a balance sheet and statement of cash flows, is a legislative requirement and important for good financial management. The shift to the Equity Index system at the start of this year means that schools will receive different amounts.”

Three recommendations from the report have been made to the Ministry of Education.

The first is ensuring schools are complying with their property planning requirements by having up-to-date cyclical maintenance plans.

The second is engaging with the schools identified as not preparing full budgets and providing them with the necessary support to ensure that their budgets for the next school year are complete.

And, finally, continuing to simplify the level of financial reporting required in the financial statements.