A school which blew more than $5000 on a leaving present for an outgoing principal is standing by the decision.

The Auditor-General’s 2021 nationwide schools audit found two schools splashed out several thousand dollars on gifts and a leaving do for outgoing principals.

One of the institutions, Halcombe School, spent $5070 on leaving gifts for its former principal.

“Although the board approved the gifts, the school does not have a gift policy and the total amount spent was considered relatively high for a school.”

Trustee Simon Wishnowsky said the school was extremely well-served by the departing principal, who since 1998 as both teacher and principal, gave consistently excellent service to tamariki and whānau.

“Her dedication and hard work ensured that Halcombe School had high levels of achievement, inclusion, and learning, and is seen as a school of choice in our region. After due consideration, and full agreement, the Halcombe School board of trustees, staff and community were pleased to offer this gift on behalf of grateful community.

“Although we did not have a gifts policy at the time the Halcombe School board of trustees was in agreement that this gift was moderate, conservative and appropriate use of public funds. We have now implemented a gifts policy, as recommended by the audit report.”

Wishnowsky did not respond to questions regarding what the gifts were or if the money was repaid.

The audit also found Waiuku College spent $1527 on a gift and $6909 on leaving ceremonies to farewell its former principal.

“The board also used funds that were originally raised for a kapa haka trip,” the report said.

“The farewell gift exceeded the school’s gift policy, and the amount spent for the leaving ceremonies was relatively high for a school.”

The report said spending public money on farewells and retirements should be moderate, conservative, and appropriate.

A member of the Waiuku College board, Peter Attwood, told Stuff it accepted the findings and had put in appropriate processes to ensure that such expenditure did not occur in the future.

Waiuku College has been approached for comment.

Other issues highlighted in the report included two schools claiming money through the wage subsidy scheme they were not eligible for and 19 schools being in financial difficulty.

On the financial health of schools, the audit found schools had more cash available and increased working capital, but there were more schools that recorded a deficit.

“Overall, there were about the same number of schools in financial difficulty this year compared to last year.”

As well as this, the nationwide audit found that non-compliance with the Holidays Act had been ongoing for several years.

“The impact on thousands of current and former school employees who might have been incorrectly paid over many years is concerning. Progressing the remediation payments needs to be a high priority.”