Concerns over safeguarding of schools’ spending of public funds raised in report

There are “weaknesses and inconsistencies” in arrangements for safeguarding how Northern Ireland’s school system spends public funds, an Audit Office report has found.

The report by Comptroller and Auditor General Dorinnia Carville said that a “coherent, modernised governance framework is urgently required”.

Her report has examined governance and accountability arrangements in Northern Ireland’s education system, focusing on the Voluntary Grammar (VG) and Grant-Maintained Integrated (GMI) schools sectors.

Funding of £392 million was given to VG and GMI schools in 2024-25.

The report said: “Northern Ireland’s education system is large, complex and historically fragmented, comprising more than 1,000 schools across controlled, maintained, VG, integrated, Irish-medium and special school sectors.

“This complexity is rooted in long-standing differences in ownership and management.

“Controlled schools are state owned, while voluntary schools – including VG schools – retain private ownership and management arrangements.”

The report said this has resulted in differing arrangements between the VG/GMI sectors and other schools for ensuring good governance in the way public money is spent.

It said the inconsistencies are “partly attributable to a lack of clarity in the legislative framework”.

It said: “This structural distinction has created differing accountability, oversight and intervention arrangements across the system.

“There is a risk therefore that serious concerns raised by parents, staff or governors may trigger an inconsistent response across sectors.”

The report said reliance is placed on information submitted by schools and on the work of auditors and boards of governors.

However, it raised concern that not all schools are submitting information to the Education Authority (EA), and there is “limited scrutiny of this information by the EA to identify emerging risks and give assurance that public money is being spent properly”.

The report also identified “uncertainty” regarding the roles and powers of the Department of Education and the EA for oversight and intervention where risks are identified.

It said: “Our findings confirm that a coherent, modernised governance framework is urgently required.

“Without clearer legislation, updated guidance along with robust consistent oversight arrangements across all sectors, the department and the EA cannot provide the level of assurance needed to safeguard significant amounts of public money or ensure that strong governance standards are applied effectively across the school system.”

The report found “contradictory views” between the department and the EA on the extent of intervention powers in VG and GMI schools should a problem arise.

Ms Carville said: “It is important that effective arrangements operate over the use of significant public funds by schools.

“This report highlights various inconsistencies and areas of uncertainty, which could potentially result in serious risks or concerns failing to be properly identified and adequately addressed.

“We recognise the challenges presented by the current legislative framework. Addressing these challenges will take time.

“However, there is a need in the shorter-term for proactive action by the department and EA to provide assurance to pupils, parents and taxpayers.

“This includes clarifying and ensuring understanding of oversight and intervention powers, strengthening scrutiny of schools’ financial and governance information, and putting in place consistent processes for escalating and managing risks.”

Education Minister Paul Givan said: “I welcome the report on governance, accountability and oversight arrangements relating to the voluntary grammar and grant-maintained integrated school sectors.

“When implemented, the recommendations will be of great value in bringing forward a modernised governance framework to support delivery of positive outcomes for our children and young people.

“Work is already under way as part of my five-year budget strategy which will consider and reform the model of financial management for schools.

“Our education structures are complex. I am keen to promote clarity across the system to allow schools to operate effectively, to support boards of governors and to ensure that children and young people flourish.

“A robust governance approach across school types will be vital to ensure the improvements outlined in today’s report are of value. My officials are working to consider how the recommendations can be taken forward.”