Chair Miriam Silva today wrote to parents of college students that the Federal Government would “resume all Commonwealth funding to the Islamic College of South Australia”.

“This is indeed good news as we together prepare for the 2016 school year,” she wrote.

“As you know, the Board of the College was in the process of responding positively to a Commonwealth notice of 13 November in which we are required to address Government concerns over compliance with the Australian Education Act … I am very pleased to report to you that all members of the Board have signed the original response and confirm it as their agreed and only response.

“It was immediately re-submitted to the Commonwealth, which today lifted the suspension of funding.”

The Commonwealth last week froze the school’s funding, pending a further response from the board. It’s believed the action was taken after a member of the board signalled the original response had not been agreed to.

Silva said today’s resolution was “a most welcome development in the management of our College as we continue to strengthen our governance, policies and procedures that, ultimately, will confirm that children and their education in a caring Islamic setting come first”.

Education Minister Simon Birmingham said in a statement “the Islamic College of South Australia has completed the required actions to have this suspension lifted pending completion of the full assessment into their proposed actions to achieve full compliance with funding criteria”.

“The Department is now formally considering the authority’s response to the 13 November notice,” he said.

“It is disappointing the suspension of funding last week was necessary for all the members of the school board to focus on doing the right thing by the staff and students.

“This process is essential to ensure taxpayer dollars are spent to support school education and school students as intended under the Australian Education Act.”

The State Government also withdrew its funding pending a review. A spokeswoman for State Education Minister Susan Close told InDaily: “The minister has considered the report and has written to the Islamic College seeking its response to the issues raised. State funding remains suspended.”

The college also advised that interim principal Dr Lynda MacLeod, appointed in the wake of a turbulent period which saw parents protest the school’s management, will stay on until the end of Term One next year.