Calling for ''considerable reform and change'', the report was requested by the board of trustees, who appointed Oamaru businessman and former Waitaki mayor Alan McLay and former John McGlashan principal Michael Corkery to prepare it.
A copy of their report has been leaked to the Otago Daily Times, which also understands a draft Education Review Office (ERO) report being considered by the board makes similar comments the board and management are not capable of taking the school forward, although it compliments academic achievement.
The McLay-Corkery report arose from education consultant Cleave Hay's report commissioned by the board in June to look at 17 issues raised with the Ministry of Education.
Although the board rejected some of the findings, including that the school was ''at a point of crisis'', it adopted its nine recommendations.
Under one of the recommendations, Mr McLay and Mr Corkery were to determine whether there was substance to the Hay report's claims and allegations and make recommendations.
They confirmed the Hay report was ''substantially correct'' and the school was ''at considerable risk'', reflecting Mr Hay's ''point of crisis'' assessment.
''We have found there is considerable disaffection and lack of trust in school governance, leadership and management - among staff and within the community,'' the report said in its conclusion.
It continued: ''It has led to what is a toxic environment for many staff and it is most likely impacting on student learning and wellbeing.
''It is unlikely that this will change as long as the current governance arrangements and management structures remain in place.
''In our view, the board has been ineffective in meeting the responsibilities of its governance role, which is to determine the school's policy framework and to direct, work with and oversee the rector and management team in implementing it.
''Although some staff and parents recognise some good qualities, it is clear that the current management style and practices put the board and school at considerable risk.
''This needs to be rectified urgently and considerable reform and change is called for.''
One of the report's findings was a lack of, or very poor, governance structures to guide processes, leading to the rector and senior management usurping much of the board's governance role and functions.
''The board, in our view, appears to have lost control of its governance function and the rector and senior management have filled that vacuum.''
Preparing the report included interviews with the board, rector Paul Jackson, deputy rector John Mattisson, former staff and others which ''provided an extensive, varied and balanced representation of perspectives''.
McLay-Corkery report
Prepared after 32 hours over four weeks of interviews, email correspondence, letters and exit interviews with former staff.
The problems
• ''Toxic environment'' unlikely to change under present board and management.
• Culture of bullying with a management style of ''fear and favour''.
• Staff significantly polarised with management picking ''winners and losers''.
• Policies, procedures and systems for managing student behaviour largely ineffective and poorly implemented.
• High levels of stress and low morale among teachers. Many afraid to speak out, fearing they will be blamed, bullied or targeted.
• Employment, human resources and personnel management policies not well understood. Board at risk of ''considerable personal-grievance litigation'' from some staff.
• Board failed to fulfil its governance responsibilities.
• School management usurping board's role.
