Audit Service: School funding model is not based on the challenges faced by schools and the needs of students

The financing model of general education schools is not based on the challenges faced by schools and the needs of students, - this is stated in the audit report of the general education management model conducted by the State Audit Service, covering the years 2019-2021.

In addition, according to the document, the Ministry transferred a total of 6,694,993 GEL to schools for additional funding in 2019-2021, although "the Ministry did not evaluate the existing model of funding, did not analyze the relationship between the expenses incurred and the results achieved".

"According to the law "On General Education" in Georgia, the state finances a student's education from the state budget with a voucher corresponding to the financial norms for one student. According to the existing financing model, voucher financing is mainly directed to teachers' salaries, and other important components for the full education of students are not considered, such as: non-formal education, extracurricular activities, cultural and creative projects.

The audit team could not be sure what calculations and studies are based on the existing financing model and according to specific components, based on what needs the amount of the voucher was determined; There is no analysis of the costs and needs that the school may have and on which the amount of funding directed to them should be based.

It should also be noted that the current funding model cannot fully meet the needs of the school. Although funding is calculated based on a number of components, schools request additional funding due to funding shortfalls – mainly to cover utility costs. In 2019-2021, additional funding was provided to 205 (10% of the total) schools on average, and on average, 41% of these schools systematically request additional financial resources every year. In 2019-2021, the Ministry transferred a total of 6,694,993 GEL to schools for additional financing.

Despite the above-mentioned challenges, the Ministry did not evaluate the existing financing model, did not analyze the relationship between the incurred expenses and the achieved results; Mechanisms and relevant criteria have not been implemented to evaluate the effectiveness of the existing financing model. Therefore, it is not substantiated to what extent the current funding model takes into account the real needs of the school and whether it ensures adequate access to general education.

3% of the funding of general educational institutions is directed to the funding of private schools. Private schools receive a fixed amount of 300 GEL per student within the framework of state funding. In 2019-2021, 18 million GEL was spent on financing private schools from the state budget. The Ministry has not implemented a mechanism to assess the direction in which private schools have used the received funding, which would contribute to the transparency of the process. The absence of an accountability mechanism creates risks of inefficient disposal of budget funds.

Within the framework of the voucher system provided by the model of financing of secondary schools, the goals and results achieved by the financing are not determined in advance, and accordingly, the relationship between the expenses incurred and the results achieved is not established, and the existing financing is not based on the challenges faced by the schools and the needs of the students.

In order to solve the challenges faced by the schools of the non-Georgian language sector, the Ministry has provided increased voucher funding, however, the measures carried out without additional mechanisms and relevant studies, do not adequately respond to the challenges of the mentioned sector. Funding of private schools is based on only one, quantitative criterion and is not optimal for voucher funding, taking into account the school's financial situation and the results to be achieved

In addition, there is no accountability system in the funding of private schools. All of the above creates risks of unproductive and ineffective disposal of resources," the report states.