Why is a Private School Shutting Down Amid Misconduct Allegations?

The closure of Fernhill School in Rutherglen, South Lanarkshire, comes just days after the Office of the Scottish Charity Regulator (OSCR) raised concerns over "misconduct" related to its financial management. The school, which serves both primary and secondary pupils, has struggled with declining enrolment and increasing operational costs, leading to its decision to close at the end of the current term. This article explores the factors contributing to the closure of Fernhill School, the implications for its community, and the ongoing investigations by the OSCR.

Last updated: 17 October 2023 (BST)

What’s happening now

Fernhill School has announced its impending closure, which will take effect at the end of the current academic year. This decision follows a series of troubling developments regarding the school's financial practices and governance. The OSCR's ongoing probe into the school's financial reporting and the trustees' failure to submit required accounts for several years has raised serious concerns. The board of trustees has stated that the closure is due to multiple factors, including a reduction in student numbers and financial pressures exacerbated by rising operational costs.

Key takeaways

Fernhill School will close at the end of the academic term due to financial difficulties.
OSCR has raised concerns about misconduct in the school's financial management.
The school aims to work with St Aloysius' College to ensure continuity for students.

Timeline: how we got here

The situation at Fernhill School has developed over several months, culminating in the announcement of its closure:

1972: Fernhill School opens, supported by local parents.
1975: The school secures charitable status.
2014: Parents and staff raise funds to prevent administration.
October 2022: The school's accountants resign, citing issues with unaudited accounts.
January 2023: OSCR launches an investigation into the school's financial practices.
October 2023: The school announces its closure by the end of the term.

What’s new vs what’s known

New today/this week

The most significant update is the announcement of Fernhill School's closure, which will take place at the end of the current academic year. This decision aligns with the OSCR's findings regarding financial misconduct and non-compliance with reporting obligations.

What was already established

Prior to the closure announcement, concerns had been raised about Fernhill's financial management practices. The OSCR indicated that the trustees had not provided necessary financial information, leading to questions about the school's operational integrity.

Impact for the UK

Consumers and households

The closure of Fernhill School will directly affect the families of approximately 250 pupils currently enrolled. Parents are likely to face challenges in finding alternative educational provisions for their children, particularly given the school's location and the limited availability of similar institutions nearby. The financial burden on families may increase as they seek alternative private education, which can cost upwards of £20,000 per annum.

Businesses and jobs

For staff at Fernhill, the closure poses immediate job security concerns. However, the trustees have indicated a potential partnership with St Aloysius' College to facilitate job opportunities for affected staff. The impact on local businesses, particularly those relying on the school community, may also be significant as student numbers decline.

Policy and regulation

The OSCR's investigation into Fernhill School highlights broader issues within the governance of private educational institutions in Scotland. As the regulator continues to examine the school's practices, it may prompt further scrutiny of other similar organisations across the country, potentially leading to regulatory changes in how private schools operate and report their finances.

Numbers that matter

250: The approximate number of pupils currently enrolled at Fernhill School.
£20,000: The annual fee for senior secondary school students.
£2,291,110: Reported income for the school in 2022.
£269,000: The deficit reported for the same financial year.
37: The capacity of the nursery, which will remain open after the school's closure.

Definitions and jargon buster

OSCR: Office of the Scottish Charity Regulator, the body responsible for overseeing charities in Scotland.
Dormant accounts: Accounts filed by companies that have had no significant transactions during a financial year.
Charitable status: Recognition that allows an organisation to operate as a charity, often providing tax benefits.

How to think about the next steps

Near term (0–4 weeks)

In the immediate future, families will need to secure alternative schooling options for their children as the school prepares to close. Parents should explore nearby educational institutions, both public and private, and consider the implications of transferring their children mid-term.

Medium term (1–6 months)

In the coming months, the OSCR's investigation may provide further insights into the governance issues at Fernhill School. Stakeholders in the education sector should monitor any regulatory changes that arise from this case, as they may impact other institutions and the wider landscape of private education in Scotland.

Signals to watch

Updates from OSCR regarding the outcome of its investigation into Fernhill School.
Announcements from St Aloysius' College regarding the integration of Fernhill's students and staff.
Changes in regulatory frameworks affecting private schools in Scotland.

Practical guidance

Do

Research alternative schools early to ensure a smooth transition for your child.
Stay informed about OSCR's findings and implications for your child's education.
Engage with local community resources or parent groups for support and information.

Don’t

Don’t delay in seeking alternatives; the closure is imminent.
Don’t overlook potential financial implications when considering new schools.
Don’t hesitate to reach out to the OSCR for guidance on educational options.

Checklist

Confirm your child's enrolment status and timeline for the closure.
Identify potential alternative schools and their admission criteria.
Assess the financial implications of transferring to a new school.
Gather necessary documents for enrolment in a new institution.
Stay updated on OSCR's investigation for any developments that could affect education policies.

Risks, caveats, and uncertainties

The ongoing investigation by the OSCR raises questions about the broader governance of charitable schools in Scotland. The findings may have implications for other private educational institutions. However, as the situation is still developing, there may be uncertainties regarding the final outcomes of the investigation and potential changes to regulatory practices. Parents and stakeholders should remain cautious and informed as new information emerges.

Bottom line

The closure of Fernhill School marks a significant event in the local education landscape, driven by financial difficulties and regulatory scrutiny. As families seek alternative educational options, the implications of this closure underscore the challenges faced by private schools in maintaining financial stability and proper governance. Stakeholders must remain vigilant as this situation unfolds, with important lessons to be learned for the future of private education in the UK.

FAQs

Why is Fernhill School closing?

Fernhill School is closing due to a combination of declining enrolment and rising operational costs, compounded by concerns raised by the OSCR regarding financial misconduct.

What will happen to the students?

The school is working with St Aloysius' College to provide continuity for students, ensuring they have options for their education after the closure.

What is the OSCR investigating?

The OSCR is investigating Fernhill School for failing to submit required accounts and potential misconduct in the administration of the charity.