Plenty of violations of accounting rules in private schools

October 31, 2011

Photo: Flickr

The Education Directorate’s review of the private schools’ financial statements has been discouraging. 174 of 274 schools have violated the reporting requirements, according to the Education Directorate’s website.

“It is too high. This is the first time we’ve had such a thorough inspection of the condition. We are having a follow-up of this that includes information and guidance on how to do it right next year. We are hoping for a positive development. It is not hard to do something about many of these errors,” said inspection manager Håvard Tvinnereim in the Education Directorate.

There are both major and minor errors in the accounts. Moreover, the analysis revealed a host of other factors that may be illegal.

“Among other things the operation of barnehage (state-funded daycare), investment funds and other companies, rental of parts of buildings for things other than school activities,” said Tvinnereim.

There are both major and minor errors in the accounts. Moreover, the analysis revealed a host of other factors that may be illegal.

Another relationship upon which the study has shed some light reveals that not all the revenue sources relate directly to school operations.”The case of rental of buildings, and rental of teachers to external companies. Moreover, the revenues that are not specified in the accounts, but that we know do not come from school activities.”

Schools that apply have been given orders to correct the errors in the next year’s accounts. If they do not do this, the Directorate of Education can possibly withhold state grants. In an extreme case, it may also be appropriate to revoke licenses.

Source: VG

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