The 128-year-old Tahakopa School closed in April due to declining pupil numbers, but former school officials say the ministry is now kicking the remote South Otago community "with both boots" by holding on to significant funds raised by the community during the past several decades.
Former board of trustees member Rachel Napier told the Otago Daily Times the precise amount derived from the community was unclear, but could be as much as $80,000.
The money was kept in two accounts called "board of trustees investment" and "Tahakopa School investment", and comprised a mix of surpluses from years of fundraising initiatives and some ministry funding.
Mrs Napier said many in the community now wished to see some of the money redeployed for improvements to Tahakopa Memorial Hall, which had become the "new hub" for the township since the school closed.
"This money has been saved for a rainy day and to keep the school well resourced, which it has been. You never expect your local school to close, so of course you don’t spend it — that’s just good sense.
"Turns out we would have been better off spending it and wasting public money. We followed the rules and now we’re being unfairly punished as a result."
She said, in accordance with rules, all funds were fully accounted for, and the precise amount derived from the community could be arrived at by a ministry accountant.
"They’re basically telling us it’s too complicated to separate out, and so the blanket rule of everything going back to the ministry applies.
"We think that’s a feeble excuse.
"We’re just frustrated with the unfairness when so many local people have supported the school in good faith over the years, now to be dealt this double blow."
Ministry south leader Andrea Williams said rules governing school assets were unambiguous, in order to ensure "consistency" across all closures.
"When a school closes, any remaining funds — including cash, savings and term deposits — must be returned to the Crown. Regardless of their source, whether through fundraising, grants, donations, or ministry operational funding, these are considered public funds.
"We understand that there is a strong desire for these funds to directly benefit the community. However, once all debts and obligations are settled, any remaining resources must be returned to the ministry. As public funds, they will ultimately be directed back to Treasury.
"We acknowledge the deep commitment and generosity of those who have supported Tahakopa School over the years through fundraising, volunteering and community-building. While this may not be the outcome the board had hoped for, these requirements are in place to ensure consistency in the treatment of public funds."
