AN internal council audit into a Cumbrian primary school has been described as ‘dire reading’ after significant financial governance issues, a lack of effective control mechanisms and poor record-keeping practices were revealed.

The audit was initiated after an Ofsted inspection rated Broughton Moor Primary School as "requires improvement" in November 2023.

Recent staffing changes and a period of instability have disrupted the consistency of curriculum delivery, particularly in the older year groups, according to the most recent Ofsted report.

Many teachers feel unsupported in implementing the curriculum effectively, resulting in significant gaps and misconceptions in pupils’ knowledge in some subjects, it added.

The Ofsted report also found issues with the governing body not adequately holding the leadership to account over these issues, and concern over effective communication with parents.

Appointment of interim executive board

In response, an interim executive board (IEB) was appointed to oversee and implement improvements.

Following its appointment, the IEB noted concerns over financial management and requested a full audit to assess the control frameworks in place.

The audit examined various areas, including financial management, income, payroll, purchasing, asset and information management, and the school’s cultural environment.

It found fundamental weaknesses across these areas, specifically noting a substantial budget deficit increase from £2,000 to £82,000 over the 2023/24 fiscal year.

Key deficiencies were identified in financial reporting, budget monitoring, and internal controls, with no evidence that essential financial reviews or reconciliations were conducted.

The audit rated the school's financial governance as providing only limited assurance, indicating a high level of risk.

What does the IEB recommend?

Recommendations from the audit focus on implementing rigorous controls and establishing comprehensive financial procedures to ensure better accountability.

They include developing and approving documented procedures for all financial systems, appointing a dedicated finance sub-committee, enhancing record-keeping in alignment with corporate policies, and ensuring regular financial reports are scrutinised by the governing body.

It also recommends strengthening the school’s cultural framework to foster transparency, accountability, and staff engagement.

Other recommendations involve enhancing the oversight of payroll and purchasing processes, creating an asset register for better tracking of ICT and non-consumable items, and implementing an anti-fraud policy.

There’s also a need for effective leadership to drive these changes and the appointment of governors with expertise in financial management, according to the audit report.

The school’s leadership has committed to implementing the recommended actions, which will be monitored regularly to ensure compliance and improvement.

'This makes really dire reading'

At a meeting of the audit committee of Cumberland Council on November 12, Michael Roper, the council’s acting head of internal audit and risk management, explained that the audit itself was a difficult process due to the 'lack of communication' with the headteacher, and an interim headteacher was brought in offering limited insight.

Additionally, the lack of proper bookkeeping made the combing through of various paperwork difficult.

Cllr John Mallinson (Irthington and Houghton, Conservative) said to Mr Roper of the report: “This makes really dire reading, and obviously a lot of culpability is on the outgoing governing body.”

But, Cllr Mallinson added: “It’s so bad that it cannot just be the governing body that was responsible for this – there’s been some atrocious management, or lack of it.”

Cllr Carni McCarron-Holmes (Maryport North, Labour) said the problem points to a bigger issue of ongoing decline in the area of Broughton Moor, near Maryport, overall.

The area’s parish council was understaffed and she, along with other council delegates, took to people’s doorsteps asking for them to join it.

“It needs ongoing support now. It’s a village that’s going to go under and I’m very sorry about that.

“I think the staff there are really worried about their position because the number of schoolchildren in there are dropping as parents are worried about the future,” Cllr McCarron-Holmes concluded.