Issue - meetings

Background:

This report provided details of a reference from the Audit Committee which considered a report on 11 July 2013 regarding the investigation into the misappropriation of funds from Temple Mill Primary School by the former school business manager.

Following internal audit enquiries in January 2011 into potentially unusual payments from the school’s bank account, the school business manager admitted that she had abused her position through misuse of school funds and subsequently repaid £41,656 to the school’s account to cover the improper payments identified at that time.  She was suspended from duty and subsequently dismissed from her post on grounds of gross misconduct.

Further investigations identified widespread misuse of the school’s funds. The total amount involved was established to be over £200,000, including the sums repaid voluntarily. At sentencing, a compensation order for £170,000 was awarded in the Council’s favour.

The Audit Committee considered four options regarding the allocation of the recovered monies and recommended to Cabinet the provision of training on governance issues (option 4), as this would reduce the risk of a similar fraud occurring elsewhere in Medway.

The Leader stated that he (together with Councillor O’Brien) had recently met with the Headteacher and Chair of Governors of Temple Mill Primary School where he had been informed of the school’s request to address the Audit Committee regarding the issues. The Leader also stated that further consideration of this issue by the Audit Committee be held in the public domain.

Reasons:

To gain a greater understanding of the issues surrounding this case before making a final decision on the allocation of the recovered funds.