Probe after school spends £500,000 bussing pupils in

Officials from the Wales Audit office have found that Llanfyllin High School spent the money on subsidising the transport costs of pupils from outside its catchment, including 149 from Shropshire, and 38 from Powys.

The move goes against a policy introduced by Powys County Council in 2008 which prevents schools using their delegated budgets to pay for a service already provided by the council.

School governor and county councillor Gwynfor Thomas today claimed the council had "known all along that this was going on".

Powys County Council's cabinet will consider a proposal from the school on Tuesday, calling for it to be allowed to continue with the policy until there is an outcome in the county's secondary school review process.

But the council could decide to tell the school to enforce the policy and to repay £500,000.

Peter Lewis, County Councillor for Llanfyllin, and a governor at the school, said he hoped their would be a resolution in the dispute.

He said: "We are working closely with Powys County Council for the most favourable outcome for the school, the parents, the community, Powys, but most importantly, the children."

A report compiled for the council's cabinet by Councillor Arwel Jones, says that the total is estimated to be around £510,000.

Councillor Jones says: "Investigation established that since September 2011 Llanfyllin High School has not fully complied with regulation 5.2 contained in the Powys Scheme for the Financing of Schools because it uses its delegated schools budget to fund out of catchment area transport.

"In 2015/16 it spends £142,500 per annum and collects an estimated £40,000 per annum from parents. The deficit met from the school's delegated budget is estimated at £102,500 per annum. A similar pattern has occurred over the previous five years."

The school's governing body includes several prominent county councillors, including the leader of the Conservative group, Aled Davies, and cabinet member, Darren Mayor.

Councillor Mayor said: "At no point have the school hidden their non compliance from the education department."

He added: "An alternative solution has been found and proposed by the school governors. It is a reasonable proposal in the circumstances that we find ourselves in and ultimately and more importantly provides continuity of education for pupils whose education will be affected if the regulation is implemented with no significant lead in time. I hope that sense prevails for the sake of the continuity in the education of the young people currently being educated in LHS."