THE former headteacher of Beaconsfield High School has spoken out to defend a £2 million building project - which was given the go-ahead without funding in place to pay for it.

Buckinghamshire County Council has taken over payments at the girls' grammar school after “financial mismanagement” was identified.

Penny Castagnoli was the school's headteacher in June 2009, when a contract was signed with construction firm Leadbitter to build a new 'Learning Centre'.

The school put an ambitious fundraising scheme in place to raise the money, but a 'cash-flow problem' forced the county council to intervene.

A £1.3 million bailout package was agreed with the council, while Beaconsfield High raises the rest of the money. The school says it can plug the hole quickly by selling off part of its land (see link below).

The school says about £1 million has now been raised for the project, while another £700,000 has been 'pledged'.

Mrs Castagnoli this week defended the building programme, telling the Bucks Free Press the school's physical environment was 'appalling' when she took over as headteacher in 1995.

Most of the school has since been rebuilt and the new building, which will house a sixth-form centre and dining area, is the “last piece in the jigsaw”, she said.

She added: “The new building will provide a fantastic, state-of-the-art learning environment for our students, which will ensure the school continues to be the outstanding institution that we all know it is."

She said key members of the local authority, including Chris Munday, knew of the plans from the start and at no point did she or the governors “knowingly disregard financial regulations”.

Mrs Castagnoli retired as headteacher in August last year, but moved into the advisory 'consultant headteacher' role, with Owain Johns taking over as acting head.

The council later issued a 'notice of concern' to the school about its financial situation.

And it has now emerged the council sent a letter to the school on March 5 this year, ordering the termination of Mrs Castagnoli's contract as consultant headteacher.

Mrs Castagnoli told the Bucks Free Press she knew nothing of the letter and said she had already announced her resignation from the freelance post.

The school has backed this up by providing her resignation letter, which is also dated March 5. Her letter explains her decision to resign was for medical reasons.

The council's letter was obtained by the Bucks Free Press under freedom of information laws.

Chris Munday, the divisional director, commissioning and business improvement, wrote: “The Governors have clearly disregarded financial regulation and good governance principles of project management. This behaviour has damaged the reputation of the school and is unacceptable.

“It is unacceptable and entirely inappropriate that the consultant headteacher, who was in the leadership position at the school, when this financial mismanagement occurred, remains at the school on a consultancy basis.

“Necessary HR processes must be put in place to terminate this arrangement with immediate effect.”

Mrs Castagnoli said: “I had not seen the letter from Chris Munday before and its contents had not been communicated to me until now. I can say that at no point did Governors or I knowingly disregard financial regulations and my departure from the school was pre-planned and not as a result of any condition imposed by the local authority.”

Charles Hunt, the school's former chairman of governors, resigned in February. He told the Bucks Free Press his resignation had been planned due to work commitments and was not related to the school's finances.

The school is now preparing a planning application for 14 flats and a 'community arts space' on part of its land, which would then be sold to a developer to repay the debt.

Sue Imbriano, Buckinghmashire's strategic director for children and young people, said: "Staff, pupils and parents have been through a difficult time, which we feel is now reaching a satisfactory resolution. It's time to draw a line under this phase and move forward.”

Beaconsfield High is a Foundation school, meaning it is maintained by the local authority but given greater freedom than other schools. It is rated 'outstanding' by Ofsted.