The Vanuatu Teachers Union says the government needs to ensure all heads of schools know how to manage school funds.
Findings from a recent Transparency Vanuatu education report shows some primary school children are being deprived of a free education and aren't attending school as a result.
Another of the main findings of the report is that some schools are confused about how to make use of the Primary Education School Fee Grant Policy.
The President of the Vanuatu Teachers Union, Wilfred Leo, says not all heads of schools receive the proper training.
"Government hasn't done enough here to teach or to have all the heads trained in a way that they would be able to handle this. So there are some others out there in the remote places, or further out, if you're not the centre of the country, who might not understand this to manage these funds."
Wilfred Leo says when schools don't know how to obtain or use the funds properly, it puts more pressure on teacher resources, and costs get passed on to parents.