The Victorian Ombudsman has used the finding of a school principal who used his school’s bank account as a personal line of credit to highlight “systemic weaknesses” in the financial governance of Victoria’s schools.
The Ombudsman, Deborah Glass said the principal obtained almost $23,000 which was undetected by the Department of Education and Training.
“From 2016 to 2018, at the principal’s request, the school’s cash cheques were cashed by staff for school equipment and handed to the principal, who deposited the money into his own bank account,” Ms Glass said.
“He used the money to support his lifestyle – including an overseas trip for his family and for gambling,” she said.
Ms Glass said her investigation also found that the principal used the school’s purchasing card for hospitality and alcohol; spent thousands of dollars on gift cards annually; co-signed cash cheques for $10,000 worth of stamps; and failed to comply with procurement and recruitment policies and procedures.
The Ombudsman said she did not believe the conduct exposed in her report was systemic.
“I do not think many principals help themselves to school funds to support a gambling addiction and overseas holidays,” she said.
“I am tabling this report because it highlights an important and systemic weakness in the financial governance of our schools.”
Ms Glass said the school’s internal controls failed to prevent the principal’s misconduct and the Department failed to notice financial and other irregularities at the school.
“The school and the Department’s oversight of the principal, who had been declared bankrupt before taking on the role to manage a school with a budget of more than $10 million, was questionable,” she said.
“The principal in this case was able to get away with his actions for so long because the systems and controls did not work.”
Ms Glass said the Department missed red flag that may have uncovered some of the principal’s conduct earlier and the school’s business manager, council and its treasurer all lacked the qualifications and experience to challenge the principal.
The Ombudsman’s 79-page report can be accessed at this PS News link.
