Lambeth schools that have recently de-federated from the Gipsy Hill Federation are facing scrutiny over their financial management practices. Internal audit reports have highlighted concerns regarding budgetary control, governance, and financial management within these institutions.
During a meeting on Thursday, March 26, 2026, the council's Corporate Committee reviewed updates on the council's action plan in response to external auditor recommendations. The internal audit progress report for 2025-26 detailed findings from various school audits, with several indicating a need for improvement. The meeting information notes that the de-federation of these schools occurred in March 2025, with a new governing body in place from April 2025. Budgets were de-delegated in January 2024, with financial decision-making and approvals managed by the council, and then delegated back to the schools from November 2025. This transition phase, where schools are re-assuming responsibility for centrally managed areas, has been identified as a contributing factor to the current concerns.
Specifically, reports on Fenstanton Primary School, Glenbrook Primary School, Kingswood Primary School, and St Andrew's CE Primary School all flagged issues with budgetary control, governance, and financial management. The audits noted a lack of capacity and experience in business management and finance within these schools, which is crucial for supporting their leadership teams. To address this, Fenstanton Primary School is supported by the Council's Interim Central Finance Team and has recruited a School Business Manager. Glenbrook Primary School also received support from the interim team and has since recruited its own School Business Manager. Kingswood Primary School is currently supported by the interim team and is in the process of recruiting its own finance staff.
Areas of concern across these schools included incomplete asset registers, outdated bank mandates, insufficient oversight of contracts, and projected cumulative deficits. For instance, Kingswood Primary School projects a cumulative deficit of £1,340,500 for the financial year 2025/26, increasing to £2,256,073 by the end of 2027/28. The school's quarter two review and re-forecasted position reflect a cumulative figure of £1,955,026 for the current financial year, an increase of £614,526. These projected deficits, alongside other key common areas such as governance, pay, contracts, leases, income, and debt management, are being closely monitored as the schools move forward under current leadership.
In contrast, some schools, such as Archbishop Sumner CE Primary School and Iqra Primary School, received reasonable and substantial assurance respectively, with audits confirming good practice in governance, financial management, and safer recruitment. The Corporate Committee's review of the action plan in response to external auditor recommendations can be found in the Public reports pack Thursday 26 March 2026, with further details in the Internal Audit Progress Report 2025-26.
