Dáil Éireann debate -
Tuesday, 25 Jun 1996

Vol. 467 No. 4

Written Answers. - Misappropriation of Funds.

Hugh Byrne

Question:

206 Mr. H. Byrne asked the Minister for Education if her attention has been drawn to the fact that when her Departmental auditors examined the books at Ramsgrange community school at New Ross, County Wexford, they discovered that approximately £60,000 was unaccounted for and that in a subsequent court of law, a person was charged with and convicted of the misappropriation of approximately £7,000; the plans, if any, she has in relation to the remaining moneys; the changes, if any, that will be introduced; if not, the reason therefor; her views on whether non-action in this case will send out the wrong signals to the pupils, not only at Ramsgrange community school, but to many other schools; the way in which she proposes to reimburse the board of management at Ramsgrange community school for such losses; and if she will make a statement on the matter. [13674/96]

Minister for Education (Ms Bhreathnach)

I am aware of the details as set out by the Deputy in the question.

When my Department first became aware of alleged irregularities at Ramsgrange community school, inquiries were immediately initiated to establish the extent of any loss and if further action was necessary. Arising from these inquiries, a formal complaint was made to the Garda by the board of management and the principal was suspended on 22 October 1993. My Department also decided that the scale of the alleged irregularities warranted a special audit of the school's financial operations and the circumstances giving rise to the loss. Following the Garda investigation, criminal proceedings were initiated against the principal in December 1994. Proceedings of this nature are a matter for the DPP and the Department does not have any involvement. Subsequently, the principal was convicted in the Circuit Court of charges arising from the irregularities which were discovered in the finances of the school. A suspended prison sentence of two years was imposed. As a result of this, the pension, to which the person concerned was legally entitled and which was granted prior to conviction, was forfeited with effect from the date of conviction and sentence.

The legal representatives of the person concerned instituted High Court proceedings on this matter and judgment was reserved. In the circumstances it would not be appropriate for me to comment further on this aspect of the case at this time.

I should point out that no gratuity has been paid to the person concerned. My Department has sought legal advice on legal remedies available to seek reimbursement of any outstanding money.

The Department's special audit concluded that the irregularities arose primarily as a result of weak internal financial and management control systems at the school and made a number of recommendations which I understand have been or are in the course of being implemented by the board of management.

The Deputy will be aware that boards of management are primarily responsible for the governance and direction of community and comprehensive schools. My Department has advised each board of the importance of ensuring there are adequate internal controls and segregation of duties in their operations to help prevent losses of this nature arising. A special audit unit has been established in the Department to facilitate more regular audits for all schools in the sector. My Department is also engaged in the review of the financial guidelines applicable to these schools in consultation with the representative managerial body for the sector. This review will take account of the very complex nature of the financial operations of schools.

From the time that the difficulties at Ramsgrange were brought to the attention of my Department, the main priority of my Department has been to ensure that the school authorities continued to be in a position to provide a high standard of education for its pupils while also addressing the serious financial issues which had arisen at the school. Additional financial resources were allocated to clear the serious deficit position which has arisen including a bank overdraft which had not been disclosed previously. I understand that all liabilities have now been cleared.

I am satisfied that my Department took all appropriate steps in dealing with this matter. I am also satisfied that the steps taken will prove a valuable support to school management and help to prevent further losses arising in the sector.