Asked by: Imran Hussain (Labour - Bradford East)
Question to the Department for Education:
To ask the Secretary of State for Education, what steps his Department has taken to improve the scrutiny of (a) finances and (b) academic performance at academies as a result of the collapse of the Wakefield City Academy Trust.
Answered by Nadhim Zahawi
The department continually reviews and improve systems and processes to oversee academies. We have strengthened our processes for monitoring the overall performance of MATs and ensuring growth is sustainable and delivers improvement. We have also improved support available, for example, through funding professional development programmes for MAT trustees[1] and funding Academy Ambassadors to match high calibre business leaders with academy trusts. Academy Ambassadors work closely with academy trusts and Regional Schools Commissioners to identify trust boards where additional business expertise would improve the governance of the trust and any skills or background that would be particularly desirable in light of the opportunities and challenges the trust is facing.
The department has a robust system of financial accountability. Processes are founded on a clear framework communicated and regulated by the Education Skills and Funding Agency (ESFA), with effective oversight and compliance based on proportionate risk assessment, and robust intervention when things go wrong. ESFA scrutinises a broad range of academy trust data and intelligence to identify risk, including audited accounts and a number of annual financial returns.
All academy trusts must publish details of their financial performance in annual accounts. To ensure strong external scrutiny, all academy trusts must have an annual external audit of their annual accounts by a registered statutory auditor and the department expect trusts to act on audit findings as an opportunity to strengthen their systems. The ESFA’s focus is much broader than intervention, working with the sector to continue building capacity and expertise in financial management and forecasting. To reinforce the importance of three year financial planning the ESFA are further strengthening budget forecasting, the ESFA CEO Eileen Milner wrote to academy trusts in March 2018 setting out the requirement for all academy trusts to submit three-year financial forecasts.
Where concerns arise, ESFA works with trusts to prevent financial instability and enable them to recover their financial position and return to stable governance. Intervention is always proportionate, risk-based, and linked to non-compliance with requirements set out in the Academies Financial Handbook and academies’ funding agreements. The sector remains in a stable position, with just over 1% of academy trusts subject to an active Financial Notice to Improve.
We constantly keep under review the financial control and reporting framework for academies and introduce any necessary enhancements through the Academies Financial Handbook and the Academies Accounts Direction, both of which are re-issued on an annual basis.
[1] https://www.gov.uk/guidance/school-governors-professional-development
Asked by: Imran Hussain (Labour - Bradford East)
Question to the Department for Education:
To ask the Secretary of State for Education, when his Department was notified of concerns about the financial stability of the Wakefield City Academy Trust by the Schools Commissioner.
Answered by Nadhim Zahawi
Following a disappointing set of results in 2016, where 17 of its 21 academies were below average, and with four of its academies judged inadequate by Ofsted, Regional Schools Commissioners (RSCs) became particularly concerned about schools in the Wakefield City Academies Trust (WCAT).
The Trust Board recognised that it did not have the capacity within the Trust and its academies to bring about the rapid, sustainable school improvement which many of its schools needed, and passed a resolution to ask the department to re-broker all of its schools to new trusts that did have capacity. The decision to re-broker all 21 schools and close WCAT was based on concerns regarding the disappointing educational performance of 17 of its 21 academies, and not on financial management of the trust.
RSCs are embedded in the Department for Education so there is not an inherent time lag between concerns being identified and RSCs and the wider department taking appropriate action.
Asked by: Imran Hussain (Labour - Bradford East)
Question to the Department for Education:
To ask the Secretary of State for Education, whether assets transferred from school budgets to the Wakefield City Academy Trust have been returned to schools as a result of the re-brokering of academy contracts.
Answered by Nadhim Zahawi
In line with its Funding Agreement, Wakefield City Academies Trust (WCAT) is taking a trust-wide perspective of its finances. The department has looked at the allegations of assets being moved inappropriately from WCAT schools and we have seen no evidence of this. The West Yorkshire Police have investigated and found allegations of financial irregularities at the trust to be unsubstantiated. As a result, the police concluded their inquiries with no further action. This follows the auditors’ unqualified opinion on the trust’s accounts.
Our priority continues to be to transfer the schools to strong trusts that will be able to drive rapid and sustainable school improvement, to give pupils the best possible education. On 1 April 2018, 11 of the schools formally transferred from WCAT to their new Trusts. The department is working to transfer the remaining 10 academies as smoothly as possible and in a way that secures the financial future for each school as well as the education of their pupils. We have worked with all the schools and the new trusts to provide appropriate support and resources, including funding, so that each of the schools has what is required to improve pupil outcomes.
Asked by: Imran Hussain (Labour - Bradford East)
Question to the Department for Education:
To ask the Secretary of State for Education, on what dates transfers of assets from budgets of schools under the control of the Wakefield City Academy Trust to the Trust were made.
Answered by Nadhim Zahawi
In line with its Funding Agreement, Wakefield City Academies Trust (WCAT) is taking a trust-wide perspective of its finances. The department has looked at the allegations of assets being moved inappropriately from WCAT schools and we have seen no evidence of this. The West Yorkshire Police have investigated and found allegations of financial irregularities at the trust to be unsubstantiated. As a result, the police concluded their inquiries with no further action. This follows the auditors’ unqualified opinion on the trust’s accounts.
Our priority continues to be to transfer the schools to strong trusts that will be able to drive rapid and sustainable school improvement, to give pupils the best possible education. On 1 April 2018, 11 of the schools formally transferred from WCAT to their new Trusts. The department is working to transfer the remaining 10 academies as smoothly as possible and in a way that secures the financial future for each school as well as the education of their pupils. We have worked with all the schools and the new trusts to provide appropriate support and resources, including funding, so that each of the schools has what is required to improve pupil outcomes.
Asked by: Imran Hussain (Labour - Bradford East)
Question to the Department for Education:
To ask the Secretary of State for Education, what the value of assets transferred was from each school under the control of the Wakefield City Academy Trust in each year that the Trust was responsible for the running of those schools.
Answered by Nadhim Zahawi
In line with its Funding Agreement, Wakefield City Academies Trust (WCAT) is taking a trust-wide perspective of its finances. The department has looked at the allegations of assets being moved inappropriately from WCAT schools and we have seen no evidence of this. The West Yorkshire Police have investigated and found allegations of financial irregularities at the trust to be unsubstantiated. As a result, the police concluded their inquiries with no further action. This follows the auditors’ unqualified opinion on the trust’s accounts.
Our priority continues to be to transfer the schools to strong trusts that will be able to drive rapid and sustainable school improvement, to give pupils the best possible education. On 1 April 2018, 11 of the schools formally transferred from WCAT to their new Trusts. The department is working to transfer the remaining 10 academies as smoothly as possible and in a way that secures the financial future for each school as well as the education of their pupils. We have worked with all the schools and the new trusts to provide appropriate support and resources, including funding, so that each of the schools has what is required to improve pupil outcomes.
Asked by: Imran Hussain (Labour - Bradford East)
Question to the Department for Education:
To ask the Secretary of State for Education, pursuant to the Answer of 30 November 2017 to Question 116798, when he plans to publish the Education Funding Agency reports on Wakefield City Academy Trust; and if he will make a statement.
Answered by Nadhim Zahawi
Once all of the academies currently part of Wakefield City Academies Trust are transferred to new trusts, a copy of the report of the multi-academy trust review carried out by the Education and Skills Funding Agency in 2016, will be placed in Libraries of both Houses.
Asked by: Imran Hussain (Labour - Bradford East)
Question to the Department for Education:
To ask the Secretary of State for Education, what professional qualifications are required to work as a careers advisor in prisons.
Answered by Anne Milton
The minimum acceptable qualification that a funded National Careers Service adviser must achieve before they are permitted to deliver careers information, advice and guidance in a community or prison setting is a Level 3 Certificate in Advice and Guidance.
Asked by: Imran Hussain (Labour - Bradford East)
Question to the Department for Education:
To ask the Secretary of State for Education, whether funding removed from individual school budgets by Wakefield City Academy Trust will be reimbursed.
Answered by Nadhim Zahawi
Wakefield City Academies Trust is taking a trust-wide perspective of its finances, which many academy trusts do. The department is working to ensure all 21 academies transfer to incoming trusts in a way that secures the financial future for each school and the education of their pupils. All 21 academies will transfer to their new trusts with a balanced budget position, enabling incoming trusts to give each school a fresh start. To support this, the department is providing appropriate funding to the incoming trusts to improve pupil outcomes. The academies will be moving to a much more financially secure environment, and will be receiving excellent support from trusts with proven track records.
Asked by: Imran Hussain (Labour - Bradford East)
Question to the Department for Education:
To ask the Secretary of State for Education, whether his Department plans to provide additional funding to Trusts which are taking over schools from the Wakefield City Academy Trust.
Answered by Nadhim Zahawi
Wakefield City Academies Trust is taking a trust-wide perspective of its finances, which many academy trusts do. The department is working to ensure all 21 academies transfer to incoming trusts in a way that secures the financial future for each school and the education of their pupils. All 21 academies will transfer to their new trusts with a balanced budget position, enabling incoming trusts to give each school a fresh start. To support this, the department is providing appropriate funding to the incoming trusts to improve pupil outcomes. The academies will be moving to a much more financially secure environment, and will be receiving excellent support from trusts with proven track records.
Asked by: Imran Hussain (Labour - Bradford East)
Question to the Department for Education:
To ask the Secretary of State for Education, what information his Department holds on the amount of funding removed from individual school budgets by the Wakefield City Academy Trust.
Answered by Nadhim Zahawi
Wakefield City Academies Trust is taking a trust-wide perspective of its finances, which many academy trusts do. The department is working to ensure all 21 academies transfer to incoming trusts in a way that secures the financial future for each school and the education of their pupils. All 21 academies will transfer to their new trusts with a balanced budget position, enabling incoming trusts to give each school a fresh start. To support this, the department is providing appropriate funding to the incoming trusts to improve pupil outcomes. The academies will be moving to a much more financially secure environment, and will be receiving excellent support from trusts with proven track records.