The Committee held an inquiry into the Department for Education’s 2012-13 financial statements and the performance and capability of the Education Funding Agency in March 2014. The Committee found weaknesses in the consolidation of the accounts and the capability of the Agency to identify risks, which meant there were significant gaps in accountability. The Committee were not convinced that the Department’s and Agency’s response to the inquiry was adequate, particularly in rejecting the Committee’s recommendations on academies’ related party transactions and on ‘fit and proper persons’ tests for academy chief executives and trustees.
This inquiry challenges the Department and Agency on their response and examines the Agency’s progress in improving its data, systems and processes. The Committee also looks into the Agency’s oversight of related party transactions in the academy sector, in particular to question the Agency and also the Executive Head Teacher at Durand Academy about the related party transactions; how conflicts of interest are being managed; and what progress is being made in addressing concerns over the complex business associations at that academy.
