Idle funds, bad management

Cubed

I recently spoke with an accountant who prepared year end accounts for various schools in his area (no names given). I was shocked to hear that some schools could have anywhere from 150k to 200k sitting in current accounts for long periods of time earning little or no interest.. while another school typically urban could always be suffering cash shortages due to the cost of continual vandalism and burglaries. Firstly I think it is shockingly poor management to have large sums of money sitting in current accounts as opposed to deposit accounts, secondly that some schools have to scrape by whilst others are so flush but most shocking of all that given how cash strapped our economy is supposed to be that money like this is just left sitting with no real purpose, given the amount of schools throughout the country this could be quite a sum... My understanding of the budgetary control/grant system for schools is basic so I am open to correction.. I figure that some schools will keep funds for possible future capital developments but surely a more logical budgetary system could be implemented whereby unused funds are put back into government coffers or distributed to schools on a as needed basis...

RichardAnd

No offence meant to the OP but this is a little anecdotal, though it wouldn't surprise me if it were true. Also, that accountant isn't being very professional in disclosing information on client's accounts to outside parties.

The_Honeybadger

I know of a school that has nearly half a million on deposit, this was collected privately for a future capital project, as I am sure is the case in any school with this kind of money. Surely you are not saying this money should be taken from them because they won't be using it in the short term? If the Dept of Education provided good facilities in the first place this sort of private fundraising wouldn't be necessary (please no jibes about teachers salaries). A nothing issue IMO.

Red Actor

I have been on a board of two schools. Each had very health bank balance - 50k deposit + 50k current. I was always annoyed when extra fund raising was being mooted without a target for the raised funds. "voluntary" contributions being sought. I resigned from both boards. Schools get grants from the DES based on the number of children and not the financial plight of the school (other grants for disadvantages areas as the parents cannot be guilt tripped into coughing up!).

On an off topic note - when did you last see a Garda fund raising for a new squad car or civil servant for a new photocopier? Schools for computers and hospitals for diagnostic equipment - sure. Has the stealth "guilt tax" already been introduced?

tenchi-fan

Maybe the schools with no money are the one's guilty of bad management?

It doesn't make sense to have hundreds of thousands in a current account, but better that than IceSave where many British state-funded organisations stashed their funds.

Red Actor

there are about 3,000 promary schools. If half of them had €100k it would be 150m. Every school should publish its finances so thaqt parents can see if the "voluntary" contribution is really needed..

I don't think that second level schools have as much cash as parents lose their enthusiasm for paying up and fund raising as the children move through the system

MadsL

Shouldn't this money for capital projects be 'stashed' nationally and then released on demand. Irish bond yields are, what, 7% or so...schools should be making on this if they don't foresee capital spends in the next 2-3 years.

Cubed

No swipe was intended at teachers nor was any name or location of a school given, the point I was trying to get across relates to funds obtained from state grants just sitting idle, not private fundraising. From what i understand schools just send accounts to the Bishop for review, open to correction on that