‘Reputation at risk’ after charity money kept by school

Council auditors found “there has been a failure to adequately account for charity funds, resulting in serious reputational risk to OGC (Outwood Grange College).”

They also took legal advice on whether a crime may have been committed but ultimately decided to refer the issue to the Charity Commission.

The audit report found that of £18,700 collected for charity between 2004 and 2009 only £3,600 had actually been paid over to charities.

It also found that on 31 March 2008, as the financial year was coming to a close, £6,480.80 was transferred from the charity account to Outwood’s School Fund.

In addition, £761.76 from the charity account was used to pay pupils to waitress at two “festive meals” in December 2007.

When the school was challenged by the council auditors about the use of charity funds a payment of £9,396.36 was made to various charities on July 3 2009 with a commitment to pay a further £2,888.26. Auditors determined a further £2,860.14 needed to be paid over taking into account income received during 2009-10.

But the report said repayments may not have been made if the review of Outwood Grange’s finances had not been carried out and added: “No valid, acceptable explanation has been provided as to why these funds were retained within OGC funds.”

The report said neither Outwood’s chief executive, Michael Wilkins, nor its principal, Julie Slater, could explain why the money had been retained but suggested the former business manager/finance director, who retired in November 2008, should be interviewed. Auditors had already received information that the former business manager had advised staff at another school – which Outwood Grange was formally helping under the National Leader in Education programme – that money raised for charity could instead be kept within school funds.

The business manager, who was not named, said “donations had not been paid to charity as there had been no instruction to do so by the charity organisers within school”.

He said the use of charity money to pay for waitressing services was “an error which had been authorised during a time of a serious family illness”.

The former manager added that money was transferred from the charity account to the School Fund “due to the need to tidy up accounts at the year end”.

He went on to deny advising another school that charity donations could be retained.

But the audit report described the explanation as “unacceptable”.