Schools in the UK could manage their funds better, a new report has concluded.
Acccording to the Guardian, the Audit Commission will reveal that more than £1 billion is wasted every year.
The commission found schools are depositing money they should be spending - money that could fund more special needs
Savings were also ignored when schools signed contracts with suppliers and they should have done more to find better deals, the commission's report concludes.
Chairman of the Audit Commission Michael O'Higgins said schools were not guilty of wasting money deliberately.
"The focus has been the drive to raise standards - that's not incompatible with economy and efficiency, but if you take your eye off the ball you lose that focus," the paper reported as him saying.
The National Union of Teachers has welcomed proposed changes to scrap centralised targets.
"Putting trust back into the profession is essential; teachers know how to work together and how to share best practice amongst schools," NUT general secretary Christine Blower noted.