The Audit Office in its Special Report on the School Boards of 2022 that issued on 11 April 2022 states that the audit of School Boards shows that in many cases the procedures set out in the legislation governing the operation of the Boards and best practice are not being followed correctly, regarding the keeping of accounts and preparation of financial statements and recommends that School Boards comply with the provisions of the Act, properly maintain all books and records and prepare annual financial statements in a timely manner.
As the Audit Office states in the Report, during the school year 2020/2021, there were 168 School Ephorates operating, adding that the total grant given by the Ministry of Education, Culture, Sports and Youth, to cover their operating costs for the calendar year 2020, was €63,474.474
Among other observations and recommendations, the Audit Office noted that the private auditors recommended that the School Boards comply with the provisions of the Act, be constituted into a body within the timeframe prescribed by the Act and notify the Minister of Education, Culture, Sports and Youth.
It added that the private auditors recommended that the Ministry of Education, Culture, Sports and Youth (MESY) ensure that the relevant legislation is complied with for the preparation of accounts and the delivery/receipt of relevant documents and accounts upon the new Ephorate taking up office.
He further states that the private auditors recommended that the School Boards meet and keep minutes in accordance with the provisions of the Act and the relevant provisions of the General Principles of Administrative Law Act.
It further adds that the private auditors recommended that the School Boards comply with the provisions of the Act, in relation to the preparation, approval and execution of Budgets, which shall be prepared in accordance with their actual needs and their ability to execute them.
With regard to the preparation and submission of accounts for audit, he observed that the private auditors recommended that the School Boards comply with the provisions of the Act and submit their accounts for audit within the prescribed time frames.
In relation to collection receipts and payment warrants, the Audit Office notes that several School Boards do not issue collection receipts, making it difficult to verify the accuracy of collections, and that they do not issue payment warrants, properly completed and documented with all necessary supporting documentation, to confirm their expenditures.
Continuing in this regard, it states that the private auditors recommended that the Ministry of Public Works ensure that all Ephorates comply with the relevant circulars and instructions, as well as with the provisions of the Law and apply the provisions of the Financial and Accounting Directives applicable to the Public Service.
In relation to payroll, it states that in several of the Community School Ephorates there is no attendance register in which all employees sign the time of arrival and departure from work, in several cases staff duty sheets and/or personal and leave files are not fully up to date, and there is no signed Collective Agreement so that the conditions of service of staff can be confirmed.
The private auditors recommended that the School Boards keep properly updated attendance records, duty rosters, personal files and leave files and maintain a Collective Agreement so that the necessary information is available for purposes of calculating and controlling the payroll of School Board staff.
The Auditor's Office found instances in which the Community Council, rather than the School Board, is shown as the declared employer in the Social Security Fund and observed that in some instances the Social Security Fund Sickness Benefit Recovery Register, in which all claims submitted for sickness benefit should be recorded so that it can be monitored and updated with checks received and collection receipts, is not maintained.
He added that the private auditors recommended that the Provinces should ensure that the Employer's declaration to the Social Security Fund is correct and that they maintain all the necessary registers required to handle Social Security Fund matters.
It further finds that in most School Ephorates there is no internal control system and coupled with the non-exercise of effective supervisory control by the Ministry of Social Welfare, creates problems and weaknesses in the rational management of the operation of the School Boards and that the private auditors recommended that the Ministry of Education take the necessary actions to comply with the provisions of the legislation regarding the maintenance of efficient and effective internal control systems by the School Boards.It also states that some School Boards have not designated Members who authorize payments, sign checks issued by the School Board and manage bank accounts.
It adds that the private auditors recommended that School Boards request and file bank statements from all Principal's Funds and inform school principals of payments they may, by law, make from the Principal's Fund.
It is reported that the private auditors recommended that the Schools administer the Staff Provident Funds in accordance with the relevant Regulations and secure the approval of the Superintendent of Provident Funds prior to the establishment and operation of the Fund. Also, that deductionsand contributions for staff be made in accordance with the Statutes as approved by the Superintendent of Provident Funds.
The Audit Office also reports that it has found persistent deficiencies and weaknesses in matters relating to tendering procedures and that the private auditors have recommended that the Ephorates, before issuing any tender, make proper estimates of the cost of projects and secure appropriate appropriations. For tenders whose costs are expected to exceed the relevant thresholds, that the procedures relating to open tenders should be followed.
It states that some Ephorates do not maintain an appropriate register in which all duplicates received from the Ministry of Public Works are recorded for monitoring and control purposes; that in some cases a register is not maintained to monitor and identify computer equipment; that in some cases the Registers of Movable and Immovable CNA
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