Chapter 2 — Finance

The request for accounts in 1951

The Resident Managers were reassured that the Board of Inspectors was only going to establish the right level of funding for the schools. The terms of reference were to inquire into the conditions and circumstances of the Industrial and Reformatory Schools under the control of the Department of Education and to make recommendations as to how they might be most efficiently and most economically conducted.

The Resident Managers refused, however, to consent to the inspection as ‘the terms of reference to the inquiry were too wide, and include subjects which they do not consider relevant to the question at issue’. On 6th April 1951 the Secretary of the Association wrote to the Minister: I have been directed by the Association to inform you that the members are strongly of the opinion that no useful purpose would be served by the holding of such an inquiry.

Specifically they objected to the involvement of the Departments of Finance and Social Welfare, believing that it constituted an attempt to interfere with the way in which the schools were run. The Minister, Richard Mulcahy, tried to allay their fears, but the project was dropped in the face of continued strong opposition. A further increase of 6/- per week followed in 1952.

The request for accounts in 1954

When a further application for additional money was made in 1954, the Department tried again to get each school to submit accounts. In a letter to every Resident Manager the Minister again requested that each certified school should furnish detailed statements of its income and expenditure for each of the years ended 31st December 1951, 1952, and 1953 together with ‘particulars of improvements carried out in those years and of further improvements contemplated’. As well as demanding details about expenditure on food, clothing etc it asked for details about the farm or garden, if the school had one. It stated, ‘the gross value of the food supplied to the school and the proceeds of any sales should be shown in the statement as well as the working total expenses. The value of the food should be calculated at market prices current at the time of supply’. It also asked for the statement to include gross income from trades and industrial activities.

Unusually it also asked the Managers to furnish ‘a statement showing how far the requirements and suggestions of the Circular of the 19th March, 1952 have been complied with’. This circular, following the increase in the grant that year, asked for ‘all round improvements in the matter of diet, clothing and facilities for indoor and outdoor recreation’. The Department asked specifically for ‘Statements of Accounts (Receipts and Expenditure) for calendar years 1951, 1952 and 1953 showing in particular the amounts spent on food and clothing for those years’ and for statements ‘indicating improvements to accommodation e.g. new recreation hall, new domestic economy room etc.

The Department, in short, was asking for proof that the extra money had been used in the way intended. The letter ended with a reassurance that the Department had no hidden motive for asking for such accounts: I desire to say that the information now asked for is not in the nature of an audit, or strict investigation, of the accounts of any school. It is required solely to enable the Minister to form a correct opinion of the actual financial circumstances of the various schools so that he may be in a position to consider the application made for an increase in the rates of capitation grants for maintenance.

Accounts were received from just nine schools. They were Drogheda, Loughrea, Upton, St Anne’s Kilmacud, Pembroke Alms Industrial School, New Ross, Waterford, Westport and Clonakilty.

On 18th May 1955 the Resident Managers’ Association submitted accounts for ‘an unknown number of schools’. There was no record on file requesting these accounts. They were returned to the Association because ‘the Department was unwilling to accept these accounts in the format presented’. The Association then submitted accounts for 22 Industrial Schools. The Department no longer holds copies of these accounts and has no record of the 22 schools involved.

Further attempts to get accounts were made in 1962, when the Resident Managers’ Association submitted accounts in respect of nine schools. The Department had chosen six representative schools for the exercise. The schools that submitted accounts were Artane, Upton, Letterfrack, Lakelands, Moate, St George’s Limerick, St Patrick’s Kilkenny, Drogheda and St Kyran’s Rathdrum. All nine schools showed excess expenditure over income. A major cause for this was the drop in numbers. For example, St Kyran’s wrote,‘ The fall in numbers is a big concern with us. There was some hope of keeping things going when we had between 120 and 110 on roll, but now we are nearly on the 70 line and still falling I see no hope of keeping the place going except financial aid is increased.

Artane, which was certified to take in 830 boys, had just 430, only 367 of whom were committed by the State. An analysis of the nine accounts showed that the congregations were finding it hard to manage as numbers fell.

Finally, in 1964 the Resident Managers’ Association presented the Department with a two-page document relating to the financial position of 21 schools. Most schools were shown to have excess expenditure over income.

Unlike in the 1950s, when accounts requested by the Department were not forthcoming, as numbers fell and income dropped, the accounts became a valuable part of the case for an increase in the capitation grant.

The figures can be represented in graph form as follows:

The Department’s protracted struggle to get detailed accounts about each school reveals: (1)The power of the Congregations to resist pressure from the Department. Within their institutions the Resident Managers had near absolute power and they defended their ‘established rights’ vigorously. Without their consent, the Department could not obtain what it wanted. (2)The Department may have been sympathetic to the argument that the schools were under-funded but was aware that the situation differed across institutions. A fair decision on how much was needed to keep a child in a school depended not just on the cost of living but on the resources of the school. These resources remained a largely unknown quantity. (3)The accounts that were submitted were not as detailed as the Department wanted. Details of other income, such as from the farms or trades, were not included until the 1960s. (4)The capitation grant remained the only system of funding given consideration. Despite repeated efforts by the Department of Education to find out the different needs of each institution, it failed. Without knowing the different needs of children in different schools, it continued the system of paying the same amount for every child. The capitation grant remained the basic system until 1984.

The process for increases in the capitation grant

The Department of Education determined the capitation grant rate for committed children, but any increases were subject to the consent of the Minister of Finance. The process would begin with submissions from the Resident Managers to the Education Department making a case for an increase in the grant. The Department would consider the submission and would then put a proposal to the Department of Finance. The two Departments would then consult and the Department of Finance would then come to a decision. It could refuse to sanction an increase, or sanction one, usually at a lower rate than the one sought by Education.