GIPPSLAND Grammar Principal Michele Wakeham is adamant that the school is in “a secure financial position” after a news report published last week put a spotlight on their finances.

“And I am unequivocally confident that our school will continue to flourish as one of Victoria’s leading private schools and be the school of choice for families for the next 100 years,” Ms Wakeham said.

The Gippsland Times reached out to the school after a Herald Sun story published last week reported a number of concerns by an independent auditor for the school’s future.

The co-ed private school, which has campuses in Sale and Bairnsdale, was independently audited by Rachelle Wrigglesworth from business and strategic financial management service company ForeFront.

Ms Wrigglesworth found that the school had a working capital deficiency of $3.4 million, which indicated “a material uncertainty exists that may cast doubt on the school’s ability to continue as a going concern”.

“We also draw attention to Note 16 in the financial report, which describes the uncertainty related to the outcome of current legal claims against the Entity,” Ms Wrigglesworth wrote in the report.

Ms Wakeham says the financial information printed by the Herald Sun was sourced from a publicly available report that “we are required to publish with the Australian Charities and Not-for-profits Commission (ACNC) each June”.

The report can be read by searching for Gippsland Grammar on acnc.gov.au/charity/charities

“The article made a link between our enrolments and our financial viability, however I can reassure you that this is a common practice for financial lending within all educational institutions. Unfortunately, the figures published were not an accurate representation of our whole school enrolments from ELC to Year 12,” Ms Wakeham said.

“Our 2023 enrolment figures from ELC to Year 12 were 1127, not 1020 as was reported (in the Herald Sun). And Gippsland Grammar is not seven enrolments away from meeting our loan requirements. This figure is 114.

“I am pleased to reassure you our enrolments have grown 5.8 per cent since 2019 and are currently the highest our school has ever recorded. This gives us and our lender, National Australia Bank, confidence.”

The Herald Sun report said the school incurred a loss of $504,705 last year. The school confirmed to the Gippsland Times this figure, but said it doesn’t paint a full picture of the school’s finances.

The school’s 2023 financial report notes the school is expecting continuity of normal business activities.

The Herald Sun also pointed to a number of legal claims against the school relating to sexual abuse, with the financial burden of these claims unable to be determined.

In 2022, the Gippsland Times reported that a former student received $1.1 million in compensation related to multiple incidents of sexual abuse more than 30 years ago. Rightside Legal lawyer Laird MacDonald has been involved in representing abuse survivors from the school.

Ms Wakeham said, “while the school is ashamed that individuals have betrayed our community’s trust in the past, that does not reflect the school we are today”.

“We have been consistently transparent about these matters when we have been in a legal position to do so.”

In March this year, the school wrote about ‘Reaching Out’, a program and process established to support survivors of historic abuse. The program can be read at this URL: gippslandgrammar.au/community/reaching-out

“I can positively and genuinely reassure you that our students are currently learning and thriving at a school that is also learning and thriving. Gippsland Grammar has a committed Leadership team and staff dedicated to the success of our school and who I am proud to work alongside every single day,” Ms Wakeham said.

“Our Leadership team is supported by an equally professional and passionate Board with extensive corporate and financial experience. Together we are confident, positive and energised about our school’s future.”

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