SEVEN schools had debts of more than £1 million last year, an audit report has found.
It warned that the north's education system was coming close to a tipping point.
Auditor General Kieran Donnelly's report highlighted pressure on budgets, increasing pupil numbers and schools with sustainability issues.
His report found that while funding had increased between 2012/13 and 2016/17, there had been a 9.3 per cent reduction in real terms.
In that time, more schools have found themselves in the red.
Read More:
- Advice on school transfer makes no mention of 11-plus
- Teach children about the perils of social media from four
Since 2012/13, the number in deficit increased from 197 to 315. In that same period, those with a surplus decreased from 856 to 711.
Deficits at individual schools were highest in the post-primary sector. Seven were in excess of £1 million at March 31 2017, with the largest of £1.6m at Drumcree College in Portadown. It has since closed.
Other schools shut down in deficit included St Eugene's College in Roslea (£1.1m) and St Columban's College in Kilkeel (£1m).
Where a school shuts down, debts are written off placing greater strain on under pressure education funds. Taking these losses on means even less money for essential services including meals, maintenance and transport.
Legislation empowers the Education Authority (EA) to suspend the right to a school's delegated budget if it appears that it "is not managing the resources put at its disposal in a satisfactory manner".
The others that had deficits of £1m or more were: Strabane Academy (£1.4m), Crumlin Integrated College (£1.4m), City of Armagh High School (£1.3m) and Coleraine College (£1.1m).
Although a significant number have carried a deficit balance for more than three years, in breach of the EA's guidance, delegation has not been removed from any school.
The report found that those in the state controlled and Catholic maintained sectors had been trying to reduce costs by cutting back on books, equipment, photocopying and postage.
It also noted some had reduced contracted hours for teachers or employed teaching assistants instead of full-time teachers.
Mr Donnelly said the Department of Education and EA needed to undertake a fundamental review of how schools were funded.
He added that they also needed to ensure "appropriate and effective interventions are developed and applied to reduce the risk of mismanagement of delegated budgets as well as ensuring mechanisms are in place to strengthen financial management in schools".
"This report indicates an environment where there is pressure on school budgets, increasing pupil numbers and schools with sustainability issues," he said.
"Therefore, it is clear the system is coming close to a tipping point and action needs to be taken as a matter of urgency."
