Education and employment minister Baroness Blackstone has ruled out an inquiry into the troubled Further Education Development Agency.
She told Liberal Democrat education spokesman Don Foster that the quango, which runs research and training courses for college lecturers, was already subject to financial controls.
Mr Foster had called for ministerial intervention after it emerged that FEDA faced a substantial budget shortfall.
But Lady Blackstone said such problems were “just part of the normal operational matters for management to deal with”.