The Secondary Schools Principals Association has defended Covid-related wellbeing payments being spent by new school principals on gym equipment and personal holidays.

It was revealed in the 2022 School Audits Report that some of the Covid payments had been used under the Government's instruction of "treat yourself" in a draft guidance of the guidelines for the payments.

The guidance, according to the report, did not specify the payments had to be spent on wellbeing support "clearly linked to their role as principal" and listed examples including personal development and team culture.

Association president Vaughan Couillault said the money only went to principals in the first few years of their roles. It wasn't even a uniform payment to everybody. But certainly, I think that bit of communication was hastily put together and didn't really help the sector too much."

Hosking suggested that principals couldn't be blamed for feeling pressure in their work, seeing an instruction to treat themselves and then spending the payment on something they felt fit into that category. Couillault agreed that people would have different ideas of what they needed.

“Wellbeing for you, Mike, might be getting a counsellor or supervisor to oversee your work, wellbeing for me might be a game of golf. So wellbeing for each person looks quite different."

The audit report also found seven schools are in serious financial difficulty.

Among school spending was $31,201 on gift cards for staff and parents who voluntarily coached and helped with sports, spent by the board of trustees for Palmerston North Boys’ High.

Couillault said the amount wasn't necessarily a problem if context was applied.

"If it's spread across three people then you've probably got a bit of an issue, if it's spread across 1000people because you've got a couple of coaches per team and it's a massive sports programme, and 100-odd staff, [the gift] does get smaller and smaller."

The report, by Auditor-General of New Zealand John Ryan, listed six of the seven schools in trouble: Fraser High School in Hamilton, Matipo Road School in Auckland, Nelson College, Ngakonui Valley School in Taumarunui, Ross Intermediate in Palmerston North, Verran Primary School, Auckland and Wyndham Primary School in Southland.

The report also gives recommendations around financial reporting, maintenance plans, budgets, and Education Ministry communication.