Stanwell School could lose foundation status after cash woe

Last week, we reported Stanwell School in Penarth was in a perilous financial situation after its latest audit report discovered seven high-priority weaknesses in the school’s finances – including the new well being building going over budget by almost £300,000.

Below is the full statement from the Vale Council on the school’s situation.

Vale Council say the school’s budget set for 2022/23 was “unrealistic”, there was significant deficits and emergency financial intervention was required, and the council confirmed the school is still a foundation school, owned by the governing body and subject to limited local authority control, however this could change, with the potential for the school to move away from its foundation status. 

There was significant deficits and emergency financial intervention was required at Stanwell School in Penarth (Image: Google Maps)

Vale Council’s statement on Stanwell School's perilous financial situation, in full

“Stanwell School is a foundation school. As such it is owned by the governing body and is subject to limited local authority control. The school did not previously access the financial support service available from the council, which provides budgeting and financial advice throughout the year.

“However, since the emergency payment was made in March the school has taken up this service and the council has been working closely with the governors and senior leadership team to support them in putting adequate financial governance arrangements in place.

“A discussion has also begun about the potential for the school to move away from its foundation status. 

The school could lose its foundation status after a damning audit report (Image: Stanwell School)

“A review carried out by the Regional Internal Audit Service gave an opinion of no assurance into aspects of the financial management of Stanwell School relating to the 2022-23 financial year. This was reported to the Vale of Glamorgan Council’s Governance and Audit Committee on June 12. 

“The audit was undertaken in March after it was brought to the attention of the council’s head of finance in February that the school was facing a significant budget deficit and required emergency financial intervention from the council to address cash flow issues for the remainder of the 2022/23 financial year. 

“The auditors’ findings suggest significant weaknesses in aspects of financial management, particularly the management of a recent capital project carried out by the school.

“The report states that the budget set for 2022/23 was unrealistic in some areas and did not base the figures on realistic or historic spending levels.

“While an overspend estimated to be £283,846 on a large capital project had a significant impact on the annual budget, there were seven weaknesses in the school’s financial arrangements that were rated as being high risk.

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

“All of the recommendations made by the internal audit service have been accepted by the school and will be monitored. In addition, a follow-up audit will take place in the autumn to ensure progress has been made.”

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? Do you attend Stanwell? How has the schooling changed? Let us know all your thoughts by emailing harry.jamshidian@newsquest.co.uk.