Multi-academy Trusts

Lord Flight Excerpts

Wednesday 10th July 2019 Lords Chamber

[Lord Agnew of Oulton]

The noble Lord is right in saying that we appeared together several years ago at an Education Select Committee. A great deal of work has been done since then. Under my tenure, we have rewritten the academies handbook twice—the latest version was released in the past few weeks and includes the change relating to related-party transactions that I mentioned. We updated the academies account direction —the directions for auditors—in March. We have asked for additional scrutiny of new academy trusts to ensure that they have the correct governance structure. We have ensured that there is a scheme of financial delegation that maintains robust controls, that management accounts are shared with the board of trustees and issued regularly and that there is board oversight of capital expenditure and funding to ensure that it is used appropriately for capital purposes. I have written to all auditors in the sector on three occasions during my tenure to stress the importance of many of these issues. The conversation that the noble Lord and I had with the Select Committee a couple of years ago was absolutely right, but a huge amount has been done since then.

[Lord Flight (Con)]

My Lords, surely it is essentially the task of the governing body of the school to see that it is run properly and to exercise a role similar to that of a non-executive director.

[Lord Agnew of Oulton]

My noble friend is entirely correct. Again, we have done a lot to strengthen the quality of academy trust boards. We have organised a programme called Academy Ambassadors, finding more than 1,000 commercial individuals who have volunteered to join trusts over the past four years, bringing extra rigour and scrutiny. The regional schools commissioners have carried out 1,000 trust reviews in the last academic year, which also requires that non-exec members of the board attend those meetings.