Private school to close after 'misconduct' concerns raised

A private school in South Lanarkshire has announced it will close at the end of the school term, days after the charity regulator raised concerns over "misconduct" in how it has been run.

The Scottish Charity Regulator (OSCR) said Fernhill School - a Catholic institute in Rutherglen with primary and secondary pupils - had not submitted accounts to the watchdog in several years.

Fernhill's board of trustees did lodge unaudited dormant accounts with Companies House last year, covering 2023 and 2024, but the OSCR said it was unable to find out why.

The school told BBC Scotland News it was closing for a number of factors, including a decline in the school roll and pressure on teacher salaries.

Dormant accounts are usually filed by companies that have had no significant accounting transactions - such as paying salaries - during a financial year.

A spokesperson for the trustees said Fernhill, which charges annual fees of about £20,000 for senior secondary school pupils, would seek to file accurate financial statements with OSCR as soon as possible.

They also said Fernhill was working with another private Catholic school - St Aloysius' College in Glasgow - to provide continuity for pupils and job opportunities for staff going forwards.

Last week OSCR said it was launching a probe into Fernhill, due to the lack of accounts provided for the years ending 31 July 2022, 31 July 2023 and 31 July 2024.

It also said it had been unable to find out why the dormant accounts for the years ending 31 July 2023 and 31 July 2024 had been filed with Companies House last year by the charity.

Records show the school's accountants Bell Barr and Company resigned last October, stating to Companies House this was over the same unaudited dormant company accounts being lodged with Companies House.

The firm said it had been unable to find out from the school's trustees why this had been done.

The school opened in 1972, after a group of parents raised funds to keep a primary school operated by the Sisters of Notre Dame open. A secondary school later opened as part of the establishment, and it secured charitable status in 1975.

In 2014, parents and staff raised enough funds to save it from administration.

The school is understood to have about 250 pupils, with a nursery able to take up to 37 children.

The nursery is understood to be remaining open.

The board of trustees that run Fernhill had not replied to requests from the OSCR for details on the school's financial position. The regulator said it believed there was "misconduct in the administration of the charity".

On 28 January, OSCR informed the school it was directing Fernhill under section 30B of the 2005 Charities and Trustee Investment (Scotland) Act to "provide financial and other governance information" to the regulator.

Parents were then informed at the end of last week that the school would be closing by the summer.

Fees at the school begin at more than £13,000 for primary 1 pupils, rising to around £20,000 for senior secondary school pupils.

School accounts published in 2022 stated it would be able to continue as a going concern until 2026, but there was "material uncertainty" beyond that date.

Those accounts listed the school as having an income of £2,291,110, but it showed a deficit of just over £269,000.

The charity was also twice threatened with being struck off the Companies House register in recent years - in 2023 and 2024 - but on both occasions action was later discontinued.

On 17 April 2025, the board's trustees approved statements to Companies House saying Fernhill was not required to obtain an audit, and was also entitled to an exemption due to section 480 of the 2006 Companies Act - legislation which concerns dormant companies.

There are currently two members listed on the school's board of trustees: David Equi, of ice cream brand Equi's and Giuseppe Marini, the owner of the Nardini's ice cream chain.

OSCR stated: "It appears to OSCR that the charity trustees are in breach of their duties under section 66 of the 2005 Act to act in the interests of the charity and, as a result, there has been misconduct in the administration of the charity."

A spokesperson for Fernhill's trustees told BBC Scotland News: "In the face of rising costs from VAT on school fees, non-domestic rates, Employer National Insurance, upward pressure on teacher salaries [and] resultant decrease in school roll, the decision has been taken to close Fernhill School at the end of this academic session.

"We have been in discussion with St Aloysius' College to protect the continuity of education for our pupils, the heritage of Fernhill School and to provide good job opportunities for staff."

The spokesperson added that the school would look to work with the OSCR.