Penarth's Stanwell School in perilous financial situation

Vale of Glamorgan’s audit report 2022/23 for Stanwell School in Penarth raised seven high-priority recommendations.

Now, the council is providing extensive support to the school, which was previously run by a governing body, after an emergency payment was made to keep the school afloat in March.

The audit report revealed the school had set unrealistic budgets, had weak control limits, and incorrect decision-making had taken place.

The report even reveals the governing body was unaware of the school’s financial predicament, being told in December 2022 the school projected a deficit of £500,000 for the financial year due to increase in teachers and support staff costs and utilities payments - but the governing body was not updated on factors such as costs of a new “well-being building” going over budget and lower-than-expected grant income coming in.

One of the most damning aspects of the report was on the school’s “well-being building” - where costs rose by more than a quarter of a million pounds

Auditors also discovered there were questions raised about how the project was advertised and the contractor selected, while the selected contractor’s director’s previous company had gone into liquidation

There was also evidence of expenditure made not for business purposes or benefit of the children.

Stanwell School in Penarth set unrealistic budgets (Image: Google Maps)

Minimal detail, no contract on file and liquidation in damning report on well-being hub

One of the most damning aspects of the report was the analysis on the school’s new well-being building.

The building was initially estimated at costing £784,783 but in the latest review rose to £1,068,630, an overspend of £283,846

The report said detail on the project was minimal in terms of the source and level of funding required.

No formal contract or agreement was on file in relation to the contractor awarded the work, and auditors discovered there were questions raised about how the project was advertised and the contractor selected.

The Fair Funding Scheme for Funding Schools’ advertising and tendering process was not followed, while it was revealed the selected contractor’s director’s previous company had gone into liquidation.

Gifts of alcohol and vouchers bought with no benefit to pupils

The report made a recommendation that all expenditure should be appropriate and for business purposes only.

But, between November 2022 and January 2023, seven purchases totalling more than £3,000 took place that were not in this remit, including five purchases of gifts to staff of flowers, alcohol and vouchers.

Vale of Glamorgan Council have now stepped in to support the school (Image: Stanwell School)

Significant budget deficit in rare report

The council has said the report on Stanwell School is "very rare" and no other schools in the Vale are impacted like this.

One person involved with the school fears the impact of the report could lead to subjects being lost and a raft of redundancies made, with experienced teachers forced to leave the profession.

A spokesperson for the Vale of Glamorgan Council said “The school was facing a significant budget deficit and required an emergency financial intervention from the council to address cash flow issues for the remainder of the 2022/23 financial year. 

“A report of this nature is very rare. There are no other schools in the Vale of Glamorgan in a similar position.  

“The council has been working closely with the governors and senior leadership team to support them in putting adequate financial governance arrangements in place.

“All of the recommendations made by the internal audit service have been accepted by the school and will be monitored.”

What’s been going on at Stanwell School? Parents, were you aware of the school’s perilous financial situation? Are you a parent at Stanwell School concerned for the future of your child’s education? What do think went wrong? Let us know all your thoughts on the school by emailing harry.jamshidian@newsquest.co.uk.