School funding concerns raised
CONCERNS have been raised over the management of school funds in Argyll and Bute, a report has revealed.
An internal audit into the management of funds showed that nearly a third of schools across the area did not submit an income and expenditure report in 2022/23.
Several other points of concern are also noted in the document, which states that there was a ‘reasonable’ level of assurance among Argyll and Bute Council’s internal auditors.
‘Reasonable’ is the third stage of a five-stage scale, defined as: “Internal control, governance and the management of risk are broadly reliable. However, whilst not displaying a general trend, there are areas of concern which have been identified where elements of residual risk or weakness may put some of the system objectives at risk.”
The report is due to go before the council’s audit and scrutiny committee at its meeting today (Thursday, September 5).
A separate report is listed as being ‘to follow’.
Paul Macaskill, the council’s chief internal auditor, said: “Eleven schools were visited in undertaking this review.
“We found that school fund management committees were not always in place, constitutions that were in place were not always up to date, committee members were not formally appointed, minutes of meetings were not recorded, and evidence of decision-making was limited.
“The school fund management circular 1.10 does not reflect digital working practices, nor does it clarify roles and responsibilities sufficiently to support schools subject to interim management and staffing arrangements.
“The circular is available to all staff, however it is not formally communicated, resulting in a lack of awareness of its content, including instructions and templates to facilitate a consistent approach across all schools.
“Practical training is not currently provided to those involved in the management of school funds, and whilst a LEON module has been made available, there is limited knowledge of its existence.
“Robust processes are in place to manage funds and maintain income and expenditure records, however, these
were not always followed and do not fully follow the instructions laid out in the circular.”
Mr Macaskill added: “Expenditure was authorised in all instances, however some expenditure was not authorised in compliance with set expenditure limits and documentary evidence was not always available.
“Appropriate arrangements were found to be in place for securing cash and cheques within each school. An annual independent audit of school fund accounts had not been arranged in the majority of schools visited.
“There is no process for advising when schools apply for grants, and no corresponding register is maintained.
“Of all Argyll and Bute schools, 26 (32.5 per cent) did not submit an annual income and expenditure statement for 2022/23.
“Limited checks are carried out to ensure these are received, and there are no spot checks/reviews of individual schools’ processes.”
An Argyll and Bute Council spokesperson said: “The council’s education service is aware of the report and has agreed responses and timescales in the action plan, as outlined in the report.”