£1 million of school debt written off due to 'lack of records'

More than £1m in unrecoverable debt from Liverpool schools and nurseries has been written off by the city council including more than £300,000 for which “no significant records” existed. As part of its ongoing financial monitoring, local authority officials have sought approval to no longer pursue debts from a number of education facilities they deem unviable.

Among the sums is £320,000 at Everton children's and family centre after the maintained nursery disputed the debt. Andrew Buck, director of finance for business partnering, told members of the finance and resources scrutiny committee how the historic nature of the debt and a lack of records meant the money would no longer be pursued.

A further £740,000 in debt will also be written off having not been paid by two schools before transitioning into academies. De La Salle in Croxteth accrued a tab of £624,000 which cannot be clawed back while a further £117,000 was owed by St Ambrose in Speke to the city council.

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A report to committee members said Liverpool Council could not “sufficiently evidence” the alleged debt owed by Everton Children’s Centre and as a result would seek to write-off the funds. Mr Buck said: “It’s a historical debt that goes back quite a number of years, the school has disputed the debt outstanding.

“There are no significant records to confirm the amount of debt, because of the age of that debt now, the impact on the nursery, the decision was taken to write the debt off.” This was met with disapproval from Liberal Democrat member Cllr Andrew Makinson.

He said: “I think any resident who has been pursued for being a week or two late on their council tax would be rather astonished by the idea that we can lose the evidence for such a large debt.”

Everton Nursery School and Family Centre was formed in September 2000 from the amalgamation of Everton Road Nursery School with staff and children from Day Nurseries. It had been one of the largest and oldest nurseries in the city having been established since 1932 but it is not known how far back the alleged debt stretches.

Regarding monies owed by De La Salle and St Ambrose, Cllr Carl Cashman, leader of the Liberal Democrat group, cited the Croxteth school’s conversion to an academy with Dixons Academy Trust.

He said the write off figure was “quite concerning.” The group leader added: “Does the council really think that’s appropriate or a good look given the issues we’re facing with that academy?”

Mr Buck said: “The current scheme for financing schools and regulations do not permit the school deficit on transfer for converted academies to be transferred to the academy trust, that debt would remain with the local authority.”