Brindabella Christian College goes into administration

Brindabella Christian College has gone into voluntary administration as it faces battles on a number of fronts, including the Tax Office pursuing an $8 million debt.

Deloitte advised parents and carers in a letter that Sal Algeri and Sam Marsden were appointed Joint and Several Administrators (Administrators) today (5 March).

“We understand this may cause some concern, but we want to assure you that our key focus will be to make sure the College continues to operate on a business-as-usual basis without any disruption to student classes (to the maximum possible extent),” Deloitte said.

It said the priority would be ensuring the continuity of teaching and learning, which would continue to be led by the Executive and College Principals and the Executive Director of the Early Learning Centres.

“We are undertaking an immediate assessment of the affairs and financial position of the College, and we will work closely with key stakeholders, including the Federal and ACT Governments, to stabilise the College’s financial position and establish a new and sustainable governance framework,” Deloitte said.

It is committed to providing regular updates to parents, carers, guardians, and the wider college community.

“It is our intention to convene a town hall for the benefit of the wider College community as soon as is reasonably practicable,” Deloitte said.

“Our objective is for the College to emerge from the process on a sustainable financial footing with a robust and future-proof governance framework that will support the College’s continuation as an education provider.”

Deloitte said in a statement that the key focus of the Administrators would be to ensure the College continued to operate on a business-as-usual basis and avoid any disruption to the student classes.

The Administrators had met with key stakeholders to update them of the voluntary administration process.

Voluntary Administrator and Deloitte Turnaround & Restructuring partner Sam Marsden said: “We understand the appointment of Administrators to the College will be of significant concern to students, parents and staff.

“We wish to emphasise that the school will continue to operate on a business-as-usual basis without any disruption to student classes, to the fullest possible extent.

“Our priorities are to stabilise the College’s financial position and establish an appropriate go-forward governance framework that has the support of key stakeholders, including the ACT and Federal Governments.

“We are committed to working with the College’s leadership team, parents, and key stakeholders to ensure that the voluntary administration process can achieve the best outcome for all parties and achieve longer term sustainability for the College.”

The school proprietor, Brindabella Christian Education Limited, faces a deadline tomorrow from ACT Education Minister Yvette Berry to respond to a show cause notice over governance and financial issues, and on Friday a notice from the federal Education Department of its intention to revoke its approved authority status, essentially stripping it of its $10 million a year Commonwealth funding.

Both Ms Berry and the Education Department said the voluntary administration would not affect these processes.

A spokesperson said ACT Education Directorate officials met with the administrators this afternoon and there was agreement to work constructively and cooperatively regarding the operation of BCC.

BCEL is also facing an application from the Tax Office to wind it up over the $8 million debt in the Federal Court on 26 March.

The school has been unable to pay 53 of its teachers and the Independent Education Union took it to the Fair Work Commission on Monday, to be told that Brindabella would know about an alternative source of funding to pay them and into the future by today.

The union welcomed the administration saying it understood all staff will receive their outstanding pay from this previous pay period by Friday 7 March.

It also understood there are assurances staff will be paid from now on through administrators operating the school.

“The IEU welcomes this development and we hope it will provide some reassurance and stability for staff, students and the entire school community,” said NSW/ACT Branch Secretary Carol Matthews.

“The union will also be seeking clarity about the school’s long-term position.”

A further hearing on Friday in the Commission will proceed.

The union continues to advise members at the school to turn up for work.

Deloitte urged community members with concerns to contact the Turnaround and Restructuring Deloitte team by email at brindabellaadmin@deloitte.com.au or through its dedicated telephone hotline 00 1800 955 948.

The ACT Education phone line for concerned families and staff is also still available: 6205 5429.