THE principal of WA’s leading academic school, Perth Modern, has been at the centre of a secret investigation after members of the school board demanded she be replaced.

It has been revealed that 10 of the board’s 15 members signed a letter to Department of Education director-general Sharyn O’Neill saying they had lost confidence in principal Lois Joll, who has been head of the State’s only fully academically selective school since 2011.

The board members complained Ms Joll failed to consult the board on key decisions, particularly a proposal to build a 700-seat auditorium with a $10 million price tag at the Subiaco school.

They said a large amount of money had been set aside in the school’s finances for the project but no independent review had been done to assess whether it was the best use of funds.

The letter said even though board members believed Ms Joll was acting in what she believed to be the school’s best interests, a “fundamental lack of alignment” between the board and the principal was not tenable and needed “to be addressed through a change in the principal at the school”.

Ms O’Neill responded to their concerns by appointing professional services firm KPMG to carry out an independent review of the auditorium project.

The review, which was conducted behind closed doors with its final report sent to the board yesterday, found there had been a lack of transparency on sources of project funding. It noted that no formal business case for the auditorium had been prepared and consultation had been insufficient.

KPMG’s report said even though Ms Joll contended the theatre project was an operational matter outside the board’s influence, she could have consulted it earlier.

But it also criticised the board for not making a formal recommendation against the project, saying its actions could have given the impression of “implicit support”.

It said the department should clarify whether schools could keep operational budget savings in reserve for capital projects and it should reconsider the role of boards in independent public schools.

Ms O’Neill said yesterday she believed members of the board and the school executive had the best intentions, but they had reached a stalemate because of strong differences of opinion over the auditorium proposal.

“During this process I listened to the concerns about the school’s leadership raised by some members of the school board, as well as the support for the principal from other members of the board,” she said.

“The principal has led Perth Modern to be one of the highest-performing schools in Australia, which is a significant achievement. I accept there are some uncomfortable findings in the report for the school, the board and the department. But on balance the common- sense recommendations are productive and take us all forward.”

P&C president Andrew Stevens said it worked alongside Ms Joll to provide resources for students and a social focus for parents.

“In that vein, Lois has always been very supportive,” he said.