Fernhill School Faces Scrutiny Over Missing Charity Accounts

Fernhill School, a prestigious Catholic institution in Rutherglen, South Lanarkshire, has found itself at the center of a regulatory storm as the Office of the Scottish Charity Regulator (OSCR) launches a formal investigation into its financial reporting and governance. The inquiry, announced this week by OSCR and reported by multiple sources including Civil Society and Filmogaz.com, comes after the school failed to submit its required annual financial accounts for three consecutive years—a lapse that has raised serious questions about transparency and trustee responsibility within one of Scotland’s most recognized independent schools.

According to OSCR’s official statements, Fernhill School Ltd, which has held charitable status since 1975, did not provide its financial accounts for the years ending in July 2022, July 2023, and July 2024. Instead, the charity submitted unaudited dormant company accounts for the latter two years to Companies House, but, notably, offered no explanation for this discrepancy. The regulator’s repeated attempts to seek clarification from the school’s trustees, or governors, have so far gone unanswered—a silence that only deepens suspicions about the school’s management practices.

The situation has prompted OSCR to scrutinize the conduct of Fernhill’s trustees, focusing on whether their actions might constitute a breach of the Charities and Trustee Investment (Scotland) Act 2005. As OSCR explained, “the regulator is examining the governance of the charity, particularly focusing on the actions of the trustees, or governors, who are responsible for the charity’s management.” The regulator expressed concern that these failures might amount to misconduct in the administration of the charity, an allegation that, if substantiated, could have serious consequences for both the trustees and the school’s future as a charitable institution.

Fernhill School’s reputation for academic excellence and its role in the local community make these developments especially noteworthy. Founded in 1953 by the Sisters of Notre Dame, Fernhill has long prided itself on offering a comprehensive education to students aged three to eighteen. The school charges fees that can exceed £20,000 annually for senior pupils, provides a dedicated sixth form, and includes nursery places. In its most recent inspection in 2024, Fernhill received “very good” ratings across all evaluated areas, underscoring its status as a leading educational provider in Scotland. Yet, even such accolades cannot shield the institution from the demands of charity law and public accountability.

OSCR’s inquiry is not just about the missing accounts—it’s about the broader question of how Fernhill School is being run. The regulator has made clear that it intends to use its legal authority, specifically under section 30b of the 2005 Act, to compel the charity to produce comprehensive financial and governance information. As reported by Twasl News, “OSCR believes it is necessary to utilize its authority under section 30b of the 2005 Act. This allows the regulator to demand financial and governance information from Fernhill School Ltd to ensure transparency and accountability.”

This move is seen as essential to maintain trust in Scotland’s charity sector, especially when it comes to institutions that serve children and families. As OSCR stated in its communications, “transparency and accountability are essential for the trust placed in charitable organizations, particularly those that serve educational purposes.” The regulator’s willingness to take decisive action reflects a broader commitment to upholding governance standards and ensuring that all charities, regardless of their size or reputation, meet their legal obligations.

Some observers, including parents and local residents, have expressed concern about what the investigation might mean for Fernhill’s students and staff. With annual fees surpassing £20,000 for senior students and a history stretching back over seven decades, Fernhill is more than just a school—it’s a community institution. The school’s “very good” inspection results in 2024, highlighted by Filmogaz.com, demonstrate that its educational standards remain high, but financial stewardship is now under the microscope.

For its part, OSCR has indicated that it will continue to work with the school’s trustees to clarify the financial situation and governance practices as the inquiry progresses. The outcome will depend largely on the trustees’ willingness to engage and provide the necessary documentation. Should Fernhill’s governors fail to comply, the regulator could escalate its actions, potentially leading to legal proceedings or even the suspension of the charity’s status.

The case of Fernhill School is not the only recent example of OSCR’s oversight in action. In a related development, the regulator recently concluded an inquiry into Mental Health Aberdeen (MHA), a charity that abruptly ceased operations on July 24, 2025. Public concerns had swirled around allegations of financial mismanagement following MHA’s closure, but after a thorough investigation, OSCR found no evidence of wrongdoing. As Civil Society reported, “OSCR confirmed to Civil Society that its inquiry into MHA had concluded without any further actions, asserting that the charity trustees had acted in accordance with their duties under Scottish charity law and that there had been no inappropriate financial management leading to the charity’s insolvency.”

The contrast between the two cases is telling. While MHA’s trustees were ultimately cleared of any misconduct, Fernhill School’s governors now face tough questions about their stewardship of the charity. OSCR’s actions send a clear message: regardless of an organization’s history or public standing, compliance with charity law is non-negotiable.

As the investigation into Fernhill School continues, the broader charity sector in Scotland is paying close attention. The case highlights the importance of robust governance, transparent financial reporting, and active engagement with regulators. For Fernhill, the stakes could not be higher—not just for its trustees, but for its students, staff, and the wider community that depends on its continued success.

Ultimately, the story of Fernhill School serves as a timely reminder that even the most respected institutions must be vigilant in upholding the standards expected of charities. With OSCR’s inquiry ongoing, all eyes will be on Rutherglen as the regulator seeks to ensure that trust, transparency, and good governance remain at the heart of Scottish education.