An academy trust that runs four secondary schools in Yorkshire has been issued with a financial notice to improve over concerns about its financial management and governance.
In a letter published today, Mike Pettifer, director, academies and maintained schools, at the Education and Skills Funding Agency (ESFA), says weaknesses at the Rodillian Multi-Academy Trust have previously been highlighted in three ESFA reports, as well as in the trust’s latest set of accounts, for 2016-17.
The problems highlighted in the notice include “misuse of Condition Improvement Funding”.
Mr Pettifer’s letter says: “I am concerned about the trust’s failure to balance its budget and the historic failures in financial governance and management, some of which remain unresolved.”
He adds that while the trust has taken some action, “there are outstanding issues which, taken together, give cause for concern and this does not provide the ESFA with assurance of good financial management and governance within the trust”.
Powers revoked
The notice revokes all of the delegated authorities as identified in the Academies Financial Handbook, and transactions by the trust previously covered by these delegations must now be approved by the ESFA.
The notice tells the trust to ensure that “proper arrangements are put in place whereby there is sufficient independence to offer robust challenge and hold the CEO and accounting officer to account for the management of the budget/finances”.
It also says it must demonstrate that “every possible economy is being made to achieve a balanced budget” - including the costs of the senior management team.
Last year, Rodillian was reprimanded for paying thousands of pounds to put up its chief executive for 78 nights in a four-star hotel.
It was also named as having one of the highest paid academy chief executives in the country, with Andrew Goulty paid £210-215,000 in 2015-16.
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