Education leader investigated for dishonest use of funds to buy bikes, drones, yoga mats and teddy bears

The leader of a pupil referral unit stands accused of inappropriately spending funds to buy items including mountain bikes, drones, power tools, alcohol and food. Nick Ratcliffe, who was not a qualified headteacher when he was appointed to run North Powys Pupil Referral Unit, repeatedly requested financial training from the local authority, a professional standards hearing was told.

He had also used a council purchasing card to buy teddy bears, yoga mats and Apple products for the unit which takes pupils who struggle in mainstream schools.

An investigation was launched after a whistleblower raised concerns about what Mr Ratcliffe was buying, the Education Workforce Council Wales fitness to practise panel heard. 

Mr Ratcliffe did not follow the correct buying procedures and/or financial regulations and did not consistently obtain itemised or VAT receipts, it is alleged.

He is accused of dishonest and unacceptable professional conduct for using PRU funds inappropriately while he ran it between 2019 and 2022.

He denies all the allegations brought against him by the regulator other than buying alcohol and food for a staff Christmas meal.

Simon Anderson, the local authority line manager tasked with overseeing purchases, told the panel he checked Mr Ratclife's spending on the card around once a week.

When he queried the purchase of a bottle of wine and t-shirt Mr Ratcliffe had apologised saying the wine was a thank you gift for a member of staff and the t-shirt was for a child who did not have one for signing on the last day of term.

He also told the committee that he understood food, including milk and breakfast items for pupils, had been bought with the PRU funds as well as trips to MacDonald's which were part of the rewards for children who had behaved well.

Asked how much Mr Ratcliffe been spent on mountain bikes and GoPros Mr Anderson said he could not recall.

He told the virtual hearing on January 20 that said the bikes had been bought for pupils to use as there was no outdoor space at the PRU and the PRU lead was trying to remedy this and make the environment better.

Mr Anderson told the panel that he tended to do a "dip test" on spending by querying unusually large or small spends on the card. But agreed that his role entailed approving purchases after, rather than before, they were made.

When told it was not acceptable to buy alcohol with PRU funds and that the Pupil Development Grant should have covered t-shirts Mr Ratcliffe had been "shocked and apologetic".

Mr Anderson said he also queried buying "unnecessarily expensive" carpet and mats with the PRU logo on, but the money had already been spent and he could not recall how much it had amounted to.

Asked by the panel what guidance the local education authority had give Mr Ratcliffe on appropriate spending Mr Anderson admitted he did not know.

However, he did not see anything wrong with buying the mountain bikes for pupils to go out on. The bikes had been bought for a sum he could also not recall, but had been approved.

"The PRU lacked outdoor space where pupils could deregulate," Mr Anderson told the panel.

Buying food such as breakfast items and milk "supported nutrition" of pupils and was also appropriate, he said.

Questioned about spending money on McDonald's for pupils and value for money Mr Anderson said there was always an expectation of value for money when spending public funds.

"I was aware of food bought for the children. The PRU did not receive hot meals so the team was doing all it could to support nutrition."

He said bread, milk and cornflakes might be bought for breakfast and "rewards might be a trip to McDonald's".

Pressed on this, Mr Anderson told the committee: ""There was a rewards day every week. Whether that was a McDonald's I could not say."

Mr Ratcliffe, who began his career with Powys Council as a children's case worker, then manager and then leader of North Powys PRU in Newtown, did eventually qualify fully as a headteacher before leaving the PRU, which can take up to 30 pupils, the committee was told.

Michael Gedrim, who was part of the PRU management team and a safeguard lead for the local authority described Mr Ratcliffe as "very dedicated, knowledgeable and passionate about children achieving their best".

He told the committee that he believed some staff "went looking for things to hold against him (Ratcliffe)". Mr Ratcliffe had also told him during a conversation that some staff were "out to get him".

Jonathan Storey, Mr Ratcliffe's NEU counsel, told the hearing that "it was a real struggle" for Mr Ratcliffe to get support and training from the local authority.

The Powys Pupil Referral Unit (PRU) which is split between two sites, one in Brecon and the other in Newtown, was judged to be in need of significant improvement by Estyn inspectors in 2024.

The hearing continues.