benIT - You said "We recently has a goverment audit team in school for a week solid, looking at the finest detail of school operations - finance, Disaster recovery plan etc, they were very thorough (we heard same stories from other schools in the area). My question is why would such a audit not reveal the single network being a problem? "
Would this audit be an OFSTED inspection or something like the Financial Managaement Standard in Schools (FMSIS) audit which would be looking at compliance with DCSF accounting standards? If it is then no surprise that they would not look at the single network problem.