Regulator slates DfE about lack of transparency over academy accounts

The Department for Education (DfE) has been criticised for a lack of ‘truth and fairness’ over the reporting of academy finances in the year end accounts for 2015-16 as well as a £291m overspend over building projects.

According to the latest report into the finances of the DfE by the National Audit Office (NAO), there is a lack of transparency over academy trusts’ spending over the last year and a failure to meet expenditure limits as the department exceeded two of the key budgetary limits set by parliament.

There are serious problems caused by amalgamating two different reporting periods; the DfE has a different reporting period from academy trusts and has to produce its financial statements by a year end of 31 March, whereas the trusts have a 31 August year end to align with the end of the school year.