The annual report of  the Comptroller and Auditor General, John Purcell, examines the arrangements at five schools in a pilot public-private partnership (PPP) project.

The schools were opened in 2003 at Ballincollig and Dunmanway, Co Cork; Shannon, Co Clare; Clones, Co Monaghan and Tubbercurry, Co Sligo. The department is due to pay Hochtief - the company contracted to maintain the five PPP schools - €283 million over the 25 years of the deal to cover maintenance of the buildings and to operate services such as waste management, cleaning and security.

The report says that enrolment at four of the five schools - Ballincollig, Clones, Dunmanway and Tubbercurry - is lower than forecast, while enrolment in Shannon is higher.

It finds that the monthly payments by the department to the PPP company are being correctly calculated and processed. However, schools and principals claim that maintenance and management services due under their contracts are not being provided.

"That gives rise to the issue of whether the verification procedures currently followed by the department provide adequate assurance regarding the full delivery of contract services for which annual payments exceeding €1.4 million are made."

The report also says that communication between the department and the schools on performance issues is inadequate, and there is a lack of clarity on what is to be provided in schools and what amounts may be payable to them by the PPP company.

"Particular instances where concern was expressed by the principals included the discontinuance of a three-way liaison committee, the low level of usage of the schools by the community, a lack of ventilation preventing the use of pottery kilns, a failure to provide energy management and efficiency reports to assist schools to reduce costs, and an extensive subsidence problem in the grounds of one school."

While schools are entitled to receive half the profits from out-of-school-hours activities, no school has received such a payment.

Mr Purcell said that reporting needed to be strengthened as the original contract required that the company would identify and agree with the department any deductions required arising from shortcomings on services.

The report also refers to the 750 schools currently renting prefabs at an annual cost of €24 million. The question was raised as to whether or not it would be more costly to buy such buildings and the department has now undertaken a review of rental policy. (Sources: Irish Times, Irish Examiner)