Private Schools Resent State’s Demand For Financial Reports
“Academic oversight is one thing. Financial supervision without (the government providing) any aid or support is another”: M.S. Farooq, advocate
HYDERABAD: The Telangana government’s notices to unaided private schools seeking audited financial statements in the state have stirred unease among school managements, with many questionings why institutions receiving no government aid were being asked to open their accounts to official scrutiny. The notices also warned of action in case of non-compliance.
Managements of schools catering largely to working-class and lower-income families said the move has added to financial and administrative pressure. “Academic oversight is one thing. Financial supervision without (the government providing) any aid or support is another,” said M.S. Farooq, advocate and office-bearer of education bodies that represent minority and budget schools. “The courts have repeatedly drawn a line between regulation and financial control.”
According to school managements, unaided institutions already function on thin margins, with many running at break-even levels. They argue that mandatory audits, especially when coupled with threatening language, place a disproportionate burden on schools that are not funded, subsidised, or compensated by the state in any form.
“The government does not come to the rescue of teachers when salaries are delayed, or enrolments fall, or costs rise. So the question that the schools are asking is what is the basis for demanding detailed financial disclosures when there is no financial relationship with the government,” asked Kareemullah Khan, teacher and association member.
The issue has also revived bigger concerns about the survival of private budget schools, which operate in areas where government schools are limited or overcrowded. Many such institutions serve first-generation learners and families who cannot afford higher fees.
Officials said the notices were issued following long-standing school education rules that require the schools to share their financial details. However, the school authorities said that Supreme Court judgments over the years have consistently restricted state interference in the financial affairs of unaided and minority institutions, particularly when no public funds are involved.
The school representatives urged the state to clarify its position, revisit the scope of financial reporting requirements, and ensure oversight doesn’t turn into pressure, forcing students to bear the brunt.
