News release

Province to Improve School Board Accountability

Education (July 1999 - March 2013)

Education Minister Jane Purves today announced measures to improve the accountability of school boards. Information received about inappropriate financial practices in the Chignecto Central and Strait regional school boards prompted the department to act quickly.

"These two separate incidents are cause for serious concern," said Ms. Purves. "It speaks to the level of accountability for the tax dollars spent by school boards, and the message is loud and clear -- we must improve accountability."

The incident in the Chignecto Central Regional School Board involves $1.7 million in spending by the superintendent and chief financial officer without authorization by the school board. In the Strait Regional School Board, the situation involves a personal loan guarantee to a senior board administrator, also without the knowledge of the board.

"Like all Nova Scotians, I expect education tax dollars to be used to benefit children. Any action to the contrary is unacceptable," said Ms. Purves. "The Education Act is clear -- boards are not banks."

The department has appointed legal and audit staff to meet with the school boards, support their work, and report their findings. The first meeting took place Oct. 19.

Under the Education Act, the minister also requested information from all school boards on contracts and compensation packages for senior board administrators. An independent auditor will review this information and make recommendations on salary standards to build consistency and accountability across school boards.

Ms. Purves said she has also reported both incidents to the Auditor General.

"In both situations, I believe the elected board members are taking the right steps. I have made it clear though, that we want answers, quickly. The boards share this view and are just as eager to ensure that these kinds of events are not repeated."

The minister also commended the senior board officials for bringing the information to the attention of the department.

In total, seven school boards are responsible for $629 million in provincial education funding. Over the last two years, that funding has increased by $ 17.2 million.

"Taxpayers' money funds boards," said Ms. Purves. "Boards' job, like mine, is to ensure money is spent according to the proper process, with proper authority and for the intended purpose. We will not put up with any disregard for these procedures. If the system allowed this to happen, then we will fix the system."

Ms. Purves said later this week she will announce the terms of reference and evaluation team for the Southwest Regional School Board pilot, adding that "there may be lessons within this pilot that will apply to all school boards."

The former Southwest Regional School Board was divided into two district boards in June 2000. Since then, a chief executive officer has been overseeing administrative budgets and services at both boards. Elected school board members in the Tri-County District School Board and the South Shore District School Board are responsible for delivery of education programs.

While the pilot pre-dates the events, or discovery of events, in the Chignecto Central and Strait boards, Ms. Purves said the goal is the same -- to improve accountability between government and school boards for how tax dollars are spent.