Financial irregularities are rife at schools in a London borough where a headteacher has been charged with fraud, a new report has found.
Brent council launched a full audit of its schools after Sir Alan Davies, head of Copland Community School in Wembley, and other senior staff and governors were charged over fraud allegations.
A council report seen by the Evening Standard reveals that of the 44 Brent schools audited since September 2010, not one received a completely clean bill of health. Four primary schools are of serious concern, while 22 were given “limited assurance” after their audits.
Auditors found that schools are paying headteachers too much, not keeping proper financial records, not checking debit cards used by headteachers and not getting their annual budgets approved. Simon Lane, head of audit and investigations, wrote: “I remain concerned about the apparent lack of financial control within a significant minority of the council’s schools ... A number of schools are demonstrating a lack of compliance with basic procurement regulations ... a number of schools are failing to adhere to the national rules concerning teachers’ pay.”
Clive Heaphy, Brent council’s finance director, warned the situation could get worse as more schools become academies, which are not under the control of their local authority.
He said: “There is a recipe there for difficult times ahead and potentially for some mismanagement issues and possibly some fraud issues.”
Brent council increased its vigilance of school finances following allegations of a £2.7 million fraud at Copland Community School. Brent now spends more time auditing schools than any other local authority in London.
Hank Roberts, the Copland teacher who first drew attention to potential financial problems at the school, told the Times Educational Supplement: “This abuse of taxpayers’ money is much more widespread than anyone suspects. It will amount to millions upon millions and, with more schools becoming financially autonomous academies, will get infinitely worse.”
