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robust governance and accountability for academies recommended

27 September 2010

The National Audit Office’s (NAO) latest report highlights concerns over the financial management and governance of academies.

Whilst the Young People's Learning Agency (YPLA), the body responsible for financial monitoring of academies, has powers to monitor academic and financial performance of academies, it has no equivalent processes for monitoring standards of governance.

The NAO report recommends that if those charged with governance fail to comply with the terms of the funding agreement and the articles of association, then the YPLA should have the power to intervene and possibly terminate the contract.

From January 2011 all academy schools will be awarded exempt charity status. As more schools convert into academies clearer and tighter controls will be needed, and the YPLA will need more resource to carry out their function. The Government will shortly clarify whether it intends the YPLA to adopt the role of principal regulator and the full remit it will have in that expanded role.

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Mark Blois

Mark Blois

Partner and Head of Education

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