Shotover Primary School, in Queenstown, was flagged in the report because its board made a donation to the Shotover Primary School Foundation for a school playground build.
Board chairwoman Jane Hamilton said it was an honest mistake.
"The decision to set up and transfer the funds to the Shotover Primary School Foundation was made in 2016-17 for the purpose to protect, grow and use the excess fundraising proceeds raised in 2016 for our playground project.
"The funds were transferred in 2021," she said.
The board’s understanding was the transfer was prudent and appropriate but it accepted the audit’s view and "the foundation is expected to finalise the transfer process and transfer funds back before the end of our financial year".
She stressed the funds were not provided by the government, but instead were raised by the school’s board and community to fund a school playground as no playground was provided when the new school was built in 2016.
"This transfer was done with good intentions and for the benefit of our school community, but ultimately we accept the findings."
The other southern school to draw the attention of the ministry was Wyndham School, after it was sent a letter of support over its financial difficulties.
Board chairman Stuart Cameron said there was a combination of things which led to the letter.
"The letter was written because of our long-standing significant cyclical maintenance liability which has affected our working capital, along with high staffing costs in 2022."
Property projects overran their budget due to construction materials and building costs.
The school featured in the audit as of ongoing concern.
"While most schools operate on a fine line financially, we have taken this audit as a stimulus to ensure we have processes in place to try and prevent such maintenance issues in the future."
The ministry acknowledged the excellent progress the school board had made in rectifying historical maintenance issues.
By Nina Tapu
