Question to the Department for Education:

To ask the Secretary of State for Education, in what circumstances her Department will intervene in the (a) financial management and (b) governance of multi-academy trusts in which concerns have been brought to her attention by reports of the Education and Skills Agency.

Where concern is identified, the Education and Skills Funding Agency will respond proportionately to the severity of the risk, taking into account the scale and nature of the issue and any local circumstances. Where there are significant concerns about financial management and/or concerns about governance in an academy trust (including a multi-academy trust or constituent academies within a multi-academy trust) it may issue, and publish, a Financial Notice to Improve (FNtI). The trust must comply with all the terms of an FNtI. Failure to comply will be deemed a breach of the funding agreement by virtue of the relationship between the funding agreement and the Academies Financial Handbook. In exceptional circumstances, the funding agreement may be terminated due to non-compliance with the terms of the FNtI.