Speeches

Jess Phillips – 2016 Parliamentary Question to the Department for Education

The below Parliamentary question was asked by Jess Phillips on 2016-04-12.

To ask the Secretary of State for Education, pursuant to the Answer of 22 March 2016 to Question 30916, if she will publish details of the 26 related party transactions by academy trusts classified as irregular or improper by the Education Funding Agency.

Edward Timpson

Related party transactions by academy trusts can be classified as irregular or improper if they are not dealt with in accordance with Parliament’s intentions, legislation, the terms of the trust’s funding agreement, the Academies Financial Handbook or the trust’s internal procedures. This includes spending money other than for the purposes intended by Parliament or without the appropriate standards of conduct.

Academy trusts operate under a robust accountability system which holds them to account for the results they achieve and their use of resources. This includes a requirement to publish audited accounts each year allowing the wider public the chance to hold academy trusts to account to help make sure that spend is securing better outcomes for pupils.

The 26 related party transactions are irregular and noted in the table below (together with our findings from reviewing 2013/14 financial statements). It is important to note that irregular classification can occur where there is insufficient evidence to form an opinion.

Concern type

Summary of concern

Number of breaches

At cost

The trust either confirmed that services from a related party were not provided at cost or there was insufficient evidence of this.

5

Off-payroll

The trust confirmed that they were not compliant with HM Treasury’s off-payroll requirements for a senior member of staff.

5

Procurement

The trust confirmed they did not follow an adequate procurement process for certain purchases from a related party.

6

Procurement issues/ recruitment of family

The trust confirmed they did not follow an adequate procurement process for certain purchases from a familial related party.

1

Procurement/ at cost

The trust confirmed they did not follow an adequate procurement process for certain purchases from a related party. The trust also either confirmed that services from a related party were not provided at cost or there was insufficient evidence of this.

9