Primary school bank overdrafts
The Minister reported 16 further schools with overdrafts, the largest £3,848, representing 13% of audited schools. He said the Department had written to them and was investigating the causes; he could not yet say what action might follow, though the capitation grant had risen by 25%.
asked the Minister for Education the number of primary schools whose bank accounts were discovered to be in overdraft on audit by his Department; the largest overdraft so far discovered; and if he will state what percentage of this total number of schools audited was accounted for by those schools.
Comment on this
Since the Deputy's Question No. 298 of 26 April 1978 16 further boards of management have come to the notice of the Department as having overdrafts. The largest overdraft amounted to £3,848. Schools with overdrawn accounts represented 13 per cent of the total number of schools audited.
Comment on this
Would the Minister not consider it to be a very serious situation indeed where one-third of, I presume, a random selection of schools are in overdraft and one school is in overdraft to the tune of £3,000? What does the Minister propose to do about it?
Comment on this
My enunciation. I agree it is serious when there is an overdraft and we have written to the schools in question.
Comment on this
Is there any indication from the Minister's investigation that the schools themselves were at fault in mismanaging their finances, or is it simply that they have not got enough money?
Comment on this
I should not like to say what the reason for it is until we investigate the matter further. The Deputy is aware that I increased the capitation grant by 25 per cent this year.
Comment on this
Will the Minister give an assurance that legal action will not be taken against these schools for the recovery of moneys or in respect of their having an overdraft or to ensure that they are not obliged to have an overdraft in the future?
Comment on this
I cannot give any assurance as to what action will be taken when the inquiry is complete.