Academies: Sponsors

Lord Campbell-Savours Excerpts

Thursday 21st July 2016 Lords Chamber

[Lord Nash]

I am delighted that the noble Lord is so concerned to see value for money. It is a pity he was not around in the Labour Government; when we came into power, waste was seeping out of every pore. To get the matter into context, as I said to the noble Lord, Lord Storey, in 2013-14 the Audit Commission identified 206 cases of fraud in local authority maintained schools—given the much less rigorous accounting procedures that are required in relation to those schools, that was generally acknowledged to be an understatement—compared with 22 cases identified in academies. As I said, we need to set that in the context of such a small budget. It is a great pity that people from philanthropic backgrounds are not more appreciated. This is a move started by the Labour Party under the noble Lord, Lord Adonis, and it is something that we have continued with gusto. I find this constant sniping from the sidelines very depressing.

[Lord Campbell-Savours (Lab)]

My Lords, who is responsible for monitoring and verifying that these contracts are let at cost in the way that the Minister suggests?

[Lord Nash]

First, academies are required to have their accounts audited annually by independent auditors, which is not a requirement for local authority maintained schools. These accounts are studied rigorously by the Education Funding Agency. Each school must have an accounting policy, and we have various analytical tools for evaluating the accounts to ensure that those procedures are followed correctly.