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Academy regulation 'too weak', says MPs' report Academy regulation 'too weak', says MPs' report
(about 9 hours later)
Checks and balances on how academy chains in England spend large amounts of public money are "too weak", research commissioned by MPs has found. Checks and balances on how academy schools in England spend large amounts of public money are "too weak", research commissioned by MPs has found.
A report carried out for the Education Select Committee said "questionable practices" were being signed off.A report carried out for the Education Select Committee said "questionable practices" were being signed off.
However, the report stressed that cases of deliberate fraud were rare.However, the report stressed that cases of deliberate fraud were rare.
Education Secretary Nicky Morgan will be questioned about "loopholes" in academy regulation when she appears before the committee next month.Education Secretary Nicky Morgan will be questioned about "loopholes" in academy regulation when she appears before the committee next month.
The research, carried out by academics from the University of London's Institute of Education, found that while the system for guiding and regulating academies had improved since 2010, problems were still occurring. Greed and nepotism
The report said: "The widespread view is that the vast majority of academy trusts are staffed by honourable people working hard to address educational underperformance, often in challenging circumstances. The research - carried out by the University of London's Institute of Education - found that while regulation had improved since 2010, problems were still occurring, including potential conflicts of interest.
"Cases of deliberate fraud are rare and many of the instances where real or perceived conflicts have arisen are the result of people being asked to work too fast with too few controls. One interviewee described an academy head teacher who had spent £50,000 on a one-day training course run by a friend.
Another cited the chairman of a multi-academy trust, who was also a lawyer specialising in education, who used his company to provide all legal services for the trust.
Another said the chairman of governors in one academy told staff they would be dismissed if they discussed with students or used textbooks referencing abortion or contraception.
The chairman of the committee, Graham Stuart, told BBC Radio 4's Today programme that most academies were "working hard in challenging conditions to raise standards."
And he said the "greed, nepotism, and self-serving behaviour of a few" should not bring "the academies movement in general into disrepute".
"Issues around at-cost provision of services, and some other technicalities, are still pretty weak in regulatory terms," Mr Stuart added.
"I think we will want to question the secretary of state pretty strongly on that."
The report said the "vast majority of academy trusts" were staffed by "honourable people".
It added: "Cases of deliberate fraud are rare and many of the instances where real or perceived conflicts have arisen are the result of people being asked to work too fast with too few controls.
"Nevertheless, the general sense from the literature and the evidence collected for this study is that the checks and balances on academy trusts in relation to conflicts of interest are still too weak."Nevertheless, the general sense from the literature and the evidence collected for this study is that the checks and balances on academy trusts in relation to conflicts of interest are still too weak.
"In the course of the research we came across a significant number of real or potential conflicts of interest that we found concerning.""In the course of the research we came across a significant number of real or potential conflicts of interest that we found concerning."
Personal gain
The report raised concerns about "intangible conflicts" not directly involving money, such as those seen in the "Trojan Horse" schools in Birmingham, or in the case of a further education college deciding to close the sixth form of a school it sponsors.
It also highlighted potential conflicts of interest where individuals on trust boards benefit personally, or through their companies, from their position.
One interviewee for the research described an academy head teacher who had spent £50,000 on a one-day training course run by a friend.
Another cited the chairman of a multi-academy trust, also a lawyer specialising in education matters, who uses his company to provide all legal services for the trust.
Another said the chairman of governors in one academy had told staff they would be dismissed if they discussed with students or used text books referencing abortion or contraception.
'Proper persons test'
The study backed the findings of a Commons Public Accounts Committee report in April 2013, which suggested introducing a "fit and proper persons test" at individual academy and academy trust level.The study backed the findings of a Commons Public Accounts Committee report in April 2013, which suggested introducing a "fit and proper persons test" at individual academy and academy trust level.
The authors urged the Education Select Committee to consider whether governance regulations for trusts should be strengthened.
They also want MPs to examine whether the Education Funding Agency, responsible for financing and monitoring academies, should be split to create a separate regulator.
Committee Chairman Graham Stuart said academy sponsors could bring much needed skills to schools and help raise standards.
"This important research has identified, however, a number of loopholes in the current arrangements that could work against the best interests of academies and their students.
"We will question the new Secretary of State when she gives evidence to the inquiry next month and ask what will be done to tackle these concerns.
"The public needs to be sure that academy sponsors act only in the interest of their schools and never for other purposes."
A Department for Education spokeswoman said: "As the report recognises, the vast majority of academy trusts are focused on raising standards of education - often in our most challenging areas.A Department for Education spokeswoman said: "As the report recognises, the vast majority of academy trusts are focused on raising standards of education - often in our most challenging areas.
"All academies are subject to a strict oversight and regulatory regime which has been further tightened since 2010. We are clear that no individual or organisation with a governing relationship to an academy can make a profit from providing it with services. "All academies are subject to a strict oversight and regulatory regime which has been further tightened since 2010.
"We are clear that no individual or organisation with a governing relationship to an academy can make a profit from providing it with services.
"We have also made clear to all academies the consequences of breaching those rules and will not hesitate to take action where we think that has happened.""We have also made clear to all academies the consequences of breaching those rules and will not hesitate to take action where we think that has happened."
Nick Weller, chairman of the Independent Academies Association, said: "We would not agree that regulation is weak, but rather that it is too busy ensuring that everyone jumps through every hoop and covers every back, rather than focusing its efforts on relentlessly rooting out the small amount of bad practice in the system."
He added that certain types of academy sponsorship, by suppliers of educational services, for example, were weak and should be avoided.