EducationAudit – Delhi Orders Financial Review of Private Schools

EducationAudit – The Delhi government has initiated a large-scale financial audit of private unaided schools across the capital after receiving repeated complaints from parents alleging overcharging and financial mismanagement.

Audit Teams to Review School Accounts

The Directorate of Education has decided to engage three specialised project management units to examine the financial records of private recognised schools operating without government aid. Officials said the move aims to ensure accountability and bring greater transparency to the functioning of institutions that rely primarily on fee collections.

Each of the three units will be staffed by 10 chartered accountants, forming dedicated audit teams to scrutinise school accounts. The education department has allocated an estimated Rs 6.3 crore for the entire exercise.

According to department officials, the decision follows numerous written representations from parents who have raised concerns about steep fee hikes and suspected irregularities in financial practices at certain schools.

Routine Checks Found Inadequate

Authorities indicated that previous inspections triggered by individual complaints were limited in scope and did not allow for a deeper evaluation of financial operations. Officials said that a structured and comprehensive audit was necessary to examine patterns that may not be visible during routine checks.

Nearly 1,794 private unaided recognised schools in Delhi will fall under the review process. The audit will cover financial statements and related records for the past three academic years. The scale of the operation makes it one of the most extensive financial reviews undertaken in the capital’s school education sector.

Standard Procedure for Financial Examination

The audit teams will follow a standard operating procedure issued by the Directorate of Education. This framework outlines how financial statements should be examined and how potential discrepancies should be identified.

Officials said the teams will look for unusual transactions, unexplained expenditures, inconsistencies in income reporting, and possible violations of existing fee regulations. Beyond reviewing balance sheets and income statements, auditors will also verify supporting documentation.

These documents may include bills, expenditure registers, fee receipts, enrolment data, and details of any additional income sources. If required, teams may also conduct on-site verification to cross-check records with actual infrastructure and facilities.

Schools to Be Given Opportunity to Respond

The department has clarified that school authorities will be involved in the process. Audit teams are expected to hold discussions with management representatives in the presence of education department officials. Schools will have the opportunity to present explanations or clarifications before any conclusions are drawn.

Following the review, each institution will receive an individual report. Draft orders will be prepared based on findings and submitted to the competent authority for approval. Officials stated that any corrective steps or legal action, if warranted, would be taken only after due process.

Focus on Accountability in Education Sector

The government has maintained that the objective of the audit is not punitive but corrective. By examining three years of financial data, the department hopes to identify systemic issues, if any, and ensure compliance with existing regulations governing school fees and financial management.

The three project management units will divide the schools among themselves to complete the task within the stipulated timeframe. Authorities have not specified a deadline but indicated that the exercise will be conducted in phases to ensure thorough scrutiny.

Education department officials reiterated that transparency in financial dealings is essential to maintaining trust between schools and parents. With a large number of families dependent on private institutions for schooling, the audit is expected to bring clarity to concerns surrounding fee structures and expenditure practices.

The outcome of the review could influence future regulatory measures aimed at strengthening oversight in Delhi’s private education sector.