The federal Department of Education is close to finalising its investigation into Brindabella Christian College. Senior bureaucrats confirmed the school was not meeting conditions set by the Administrative Appeals Tribunal.
During Senate estimates on Thursday, ACT senator David Pocock asked a series of questions about the controversial Canberra school.
Last week, The Canberra Times revealed two board members of the school had resigned.
Acting assistant secretary Tony Simovski said this placed the school in breach of a condition imposed after the department took action against it in the tribunal.
The negotiated settlement required the school to have at least five board members.
The department is now close to wrapping up a four-year probe into the school, with additional information furnished to investigators in the past days.
Once the investigation is finished, the information will be passed to the delegate, who will decide on what sanction to impose.
These sanctions could include penalties up to deregistration and the withdrawal of federal government funding.
Currently, the school is on month-to-month payments, instead of quarterly, as the department attempts to get to the bottom of what has been going on.
Similarly, a line of credit with a commercial bank that had expired has been extended on a month-to-month basis
This year, the school missed the department's deadline to produce its audited financial statements. These were due at the end of June, and are yet to be received.
Senator Pocock questioned whether, given the ongoing issues with the school and its chairman Greg Zwajgenberg, whether the approved entity was "fit and proper" person to continue running the school.
Deputy secretary schools, Meg Brighton, said this was one criteria, but the investigation was yet to reach a conclusion.
"We have an investigation running into Brindabella Christian Education Limited," Ms Brighton said.
"A complex investigation with a number of different components."
Senator Pocock also raised questions about whether superannuation payments to employees were being made on time and payments to suppliers. Department of Education officials could not confirm these details, but said a number of regulators were involved in the matter, and would act accordingly.
"After four years of this, clearly things aren't going well in terms of governance, what do I say to parents?" Senator Pocock said.
"What has to happen for the department to intervene when clearly there are huge issues.
"The delegate will shortly be given thorough access by the investigation team and [then] they will make a determination," Ms Brighton said.
