A trust which runs two primary schools in Merton has been formally warned that it must improve the state of its finances or have its funding withdrawn.
Chapel St Community Schools Trust was issued a financial notice to improve by the Education Funding Agency (EFA) on February 29, which expressed “serious concerns over financial control and management.”
However, the Trust has insisted that Benedict Primary School in Church Road, Mitcham, is the only one of their schools to have had financial difficulties based on their investment in the high number of “vulnerable” children there.
Benedict Primary School in Church Road, Mitcham
Chapel St also runs Park Community School in Dorset Road, Wimbledon, as well as schools in Kingston, Battersea, Oxford and Manchester.
The condemning letter was sent after a second request from Chapel St for “urgent additional funding” from the EFA.
Addressed to group chief executive officer at Chapel St Russell Rook and signed by the director of academies and maintained schools group at the EFA, Sue Baldwin, the letter strongly condemns the Trust’s financial record.
A financial notice to improve is a formal, written warning to a school to improve their financial management and governance or face a withdrawal of funding.
Chapel St received their notice due to repeated financial “failures”, including failing to take action to avoid a cash flow deficit, failure to have in place adequate financial and monitoring controls, failure to seek approval for previous loan arrangements and failure to submit last year’s financial statements by the deadline of December 31.
The letter says: “I do acknowledge the recent changes in Trust level leadership, but the lack of advance warning of this impending cash flow deficit indicates that the Trust does not have full knowledge or control of their academies’ financial positions.”
A spokeswoman for Chapel St said: “Benedict Primary School is the only Chapel St school that has experienced financial challenges.
“Out of the seven schools in the Chapel St family, Benedict Primary School has by far the highest number of vulnerable children. As a result, the trust has prioritised investment into the school to ensure that these children and their families receive as much support and care as we can provide.
“It is for this reason that we have had to request further funding.
“As with all of our schools, the trust is hugely proud of the progress that pupils are making and grateful for the immense effort that staff, parents, carers and community members are investing to achieve this.
“The financial notice will be lifted in due course as Chapel St works with the EFA to better sustain and support the development of all our schools.”
Before the notice is lifted, Chapel St must provide a recovery plan, provide monthly reports on their financial progress, submit all audited financial statements to the EFA, and explain all relationships and financial transfers with any charities or other organisations.
Chapel St has faced criticism before, after it based Park Community School in a former Salvation Army building in Crown Lane when it opened in September 2014.
The building was described by formed council cabinet member for education, Councillor Martin Whelton, as a “corrugated iron hut”.
The former Salvation Army building in Crown Lane
Current member for children’s services, Councillor Katy Neep, criticised the fact that school had ever been allowed to open on the premises during a Full Council meeting on September 9, 2015, describing it as “in a site that is at best undesirable and at worst unsafe.”
Park Community School was moved to its current home of Tyndale House, in the former home of the Trinitarian Bible Society, in time for the new term in September 2015, after its lease with the Salvation Army expired.
Renovation work on the site of Park Community School has not yet been completed.
The spokeswoman added: “The refurbishment of the new Park Community School is proceeding well.
“At a time when there is a real pressure on primary places, we look forward to opening a wonderful educational facility that will welcome children and families in Merton for generations.”
Do your children go to a Chapel St school? Email us at pippa.allen@london.newsquest.co.uk and let us know.
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