Chapter 2 — Finance

The request for accounts in 1945

Fourteen girls’ industrial schools made submissions: Clonakilty, Kinsale, Booterstown, Goldenbridge, Westport, Birr, Wexford, Lakelands, Kilkenny female, Ballaghaderreen, Benada Abbey, Whitehall, Dundrum (County Tipperary) and New Ross.

These schools were run by the following orders: Rosminians, Presentation Brothers, Sisters of Charity, Sisters of Charity of St Vincent de Paul, Sisters of Mercy, Sisters of the Order of Our Lady of Charity of Refuge, Sisters of the Presentation Order and Sisters of the Good Shepherd.

These 21 statements, covering a period of 12 months in the years 1944 and 1945, were duly examined and the result was recorded in a Departmental memo as follows: Three of the accounts showed excesses of Income over Expenditure. viz Birr, £1.2.5, Dundrum £433 (excluding an amount of £810 claimed as ‘an allowance to Sisters wholly employed in the Industrial School’ which would convert this surplus into a deficit of £377) and New Ross £6.4.3. The remaining accounts showed deficits ranging from £27 to over £5000.

The Department went on to conclude: The statements cannot be regarded as very reliable or as furnishing an accurate view of the financial position of the schools. In some cases items of capital expenditure (especially for repairs, renewals and additional buildings) have been included e.g. Whitehall, where a deficit of £5,036 is shown a sum of £4,573 is stated to have been expended on building repairs and erection of a new sanitary wing. It was also observed that in many cases the salaries paid from the Primary Branch to members of the communities serving in the schools as literary teachers were not included in the statements of Income. The inclusion of this item would in some cases reduce the deficit to a negligible figure or convert it to a surplus of income over expenditure. We have no means of determining from these statements whether the produce of the farms or gardens is supplied to the schools or charged against the school accounts at wholesale or retail prices.

Despite these criticisms of the accounting methods the Department did reach a conclusion: On the whole we feel that the statements are not reliable. We also wish to point out that the period to which they refer may be regarded as the period of the emergency when the cost of food, clothing and other necessaries attained its maximum. In all the circumstances and making allowance for an anticipated reduction in time in the cost of these items consequent on the termination of the World War and a gradual easement in the supply position we do not feel that on the information contained in these statements a convincing case could be made to the Department of Finance for an increase in the Capitation Grant.

In concluding that the capitation grant was adequate, the Department took into account the fact that most institutions had not bothered to submit their accounts, despite the desired increase being dependent on their production. The Department wrote: We are also influenced in making this observation by the fact that a majority (over thirty) of the schools did not furnish any statements of income or expenditure in support of the claim for increased grants and also that as practically all the schools have farms attached the increased prices for agricultural produce during the emergency compensated to some extent for the rise in the cost of living.

On the face of it, the Department’s demand for detailed and reliable accounts was not unreasonable, but many institutions, including all those run by the Christian Brothers, did not comply. The result was they lost their case for an increase in funding.

The document also illustrates that the Department recognised that each institution had different needs, because of their different sizes and resources. The request for accounts from every institution was an attempt to assess these differing needs that were not being met by the capitation grant system.

The request for accounts in 1947

In early 1947 the Resident Managers’ Association made a further application for an increase of 5/- per week in the combined payments for maintenance by the State and local authorities. The rate of the capitation grant at the time for the State was 7/- for Industrial Schools and 9/6 for Reformatory Schools, with the local authorities paying 8/- to the Industrial Schools and a rate not exceeding 9/6 and not less than 8/6 for the Reformatories.

The Department replied: The Minister is prepared to have a careful examination made of the application received from the Managers’ Association and to reconsider the present grant if he is satisfied that a sufficiently strong case can be made to convince the Government and the local authorities that these grants are inadequate to meet the present expenses of the schools. He has, accordingly, directed me to say that in order to have the fullest consideration given to the matter it will be necessary (this word is deleted and changed to ‘desirable’) for each Certified School to furnish detailed statements of its income and expenditure for the year ending 31st March 1947. If it is not practicable to have the statements duly certified by an auditor they should be signed and certified by the School Manager.

The Department then put in a reminder about the failed attempt two years previously to get such accounts: In this connection I am to state that when similar statements were asked for in 1945 by the Minister through the Association of General Managers in regard to a previous application for an increase in the capitation rate for maintenance grants, only 21 out of a possible 53 furnished statements, and this factor rendered it difficult for the Minister to give favourable consideration to the application for increase. I am accordingly to request you to arrange to submit for the consideration of the Minister a statement of the financial position of school in respect of the twelve months period ending 31st March 1947.

The Department then spelled out the kind of information wanted: The statement of the financial position of your school for the period mentioned (1/4/1946 to 31/3/1947) should show in detail the items of expenditure appropriate to your industrial school only under the various heads viz. food, clothing, footwear, fuel, medical expenses, dental treatment, salaries and wages, etc.

It requested that the average yearly cost for these items ‘should be carefully calculated and shown in a separate document accompanying the statement’. The document added: Where the cost of remuneration or maintenance of Religious members of the staff is part of the expenditure, any salary or other grant received by these members as Nat. Ins. Or any capitation grants paid to the school as a national school should be included as part of the school income.

All schools did respond although not in the detail requested. Thirty seven reported a deficit per head per week for each child in the institution, and 10 institutions reported substantial debts or overdrafts. Two schools were noted as not having given particulars of the income from the farm. However, in the absence of the detailed information sought no increase was granted.

The request for accounts in 1951

The pressure on the Congregations to provide detailed accounts was increased in 1951 when it was proposed to set up an interdepartmental committee with representatives from the Departments of Education, Finance and Social Welfare to inquire into the economic running of the schools. In the meantime, a significant increase of 5/- per week was granted. There was immediate opposition from the Resident Managers’ Association to the inquiry. The minutes of a special meeting of the Christian Brothers’ Resident Managers to discuss the move, held on 14th February 1951, noted: It was decided after discussion that the offer of an increase of 5/- per head, per week should be accepted under protest as to its inadequacy. It was agreed that the proposal of a special inspection by a Board of Inspectors from each of the Departments of Education, Finance and Social Welfare should be treated with extreme caution. It was not quite clear from the Department’s letter as to what was the function of this Inspection Board would be. It was feared that this might be an attempt to infringe upon the established rights of the Manager. It was obvious that the Department was desirous of an opportunity of examining the Financial Accounts of the institutions. After discussing the various difficulties that might arise it was decided that at the General Meeting the Brothers should neither accept or reject the proposal but should press that a further letter be sent to the Department asking that their Association should be supplied, in writing, under definite headings, with what the proposed inspection is going to entail and what its powers would be.