Showing posts with label Kensal Rise Primary. Show all posts
Showing posts with label Kensal Rise Primary. Show all posts

Friday 17 May 2013

E-ACT scandal should make Brent Council pause for thought on academies issue

As the Ark academies chain announces its takeover of Kensal Rise Primary School, renaming it Ark Franklin Primary Academy and appointing a new headteacher fresh from Dubai, LINK there is news of another academy chain, E-ACT,  which runs the Crest Girls' and Boys' academies in Neasden.

I would hope that the report below will give headteachers, governing bodies and councillors pause for thought before rushing into academy conversions or supporting forced academies. Conversions are often undertaken for financial reasons with governing bodies and headteachers saying they would let pupils down if they did not go for the extra academy funding - instead much of it may end up lining the pockets of the sponsors through high salaries for the chain bosses or 'extravagant expenses'.

This report is from the BBC:

A leading academy chain has been criticised for widespread financial irregularities in an official report. The Education Funding Agency report highlights a culture of "extravagant" expenses, "prestige" venues and first class travel at the E-ACT group. The report obtained by the Times Educational Supplement and seen by BBC News adds that E-ACT spent public money on unapproved consultancy fees. The group currently runs 31 state-funded free-schools and academies around England that have opted out of local authority control.

E-ACT was set up in July 2009 as an independent educational charity and company with the principal purpose of "establishing, maintaining, managing and developing schools colleges and academies". Its director general, Sir Bruce Liddington, resigned last month. The report found that E-ACT's systems of internal financial control were "weak" and lacking "rigour" - and noted that the governance of the group was "unusual". In particular it notes that "the controls around expenses for trustees are weak".

"Expenses claims and use of corporate credit cards indicate a culture involving prestige venues, large drinks bills, business lunches and first class travel, all funded from public monies," says the report. The report says the director general's expenses may not have been "subject to proper scrutiny". "Expenses claims and card payments by senior managers in E-ACT have occasionally stretched the concepts of propriety and value for money. Controls have been lax and some payments have tended to extravagance... however we found no evidence of fraud."

The report also highlights a wider "culture of acceptance of non-compliance with E-ACT's own policies for awarding contracts." The investigation found that hundreds of thousands of pounds of public money was spent by E-ACT on purchases that were not in line with its own spending policies. Many purchases were made by Sir Bruce himself. "Our review of the director general's cost centre indicates that £361,000 has been spent on consultancy fees from 2008-9 with £237,000 of this not having an order," note the authors.

The report also raises concerns that trustees on the E-ACT board were paid for consultancy work, stressing that "payment to trustees is unusual in the charitable sector, where the basic position is that trustees should not benefit personally from their position so that they can exercise independent scrutiny over the charity's operations." ”Around half of the 13 current board members have or have in the past had contracts for service or services provided." The investigation came after the group's auditors KPMG raised concerns that its financial administration was "playing catch-up" with its rapid expansion.

In particular the report notes that some of the group's financial practices were inappropriate for an organisation with a turnover of many millions of pounds and that the boundary between E-ACT and its money-making subsidiary E-ACT Enterprises Limited (EEL) was blurred, with some EEL expenses being paid out of public money.

E-ACT stresses that it has taken swift action to address the report's concerns. Chairwoman Ann Limb, who joined the group a year ago, said: "We have overhauled both the governance and the culture of E-ACT to ensure that this can never happen again. As well as the departure of the director general, the finance director and two trustees have also left the organisation. E-ACT is about educational excellence and the changes we have made will ensure we have operational excellence to support that.

"We are implementing a robust action plan which addresses all concerns raised and are working closely with the Education Funding Agency to ensure these changes are embedded throughout the organisation."

A Department for Education spokeswoman said "Any misuse of public money meant for schools is completely unacceptable. Academies cannot hide from their responsibilities. All their accounts must be externally audited and they are held to account by the Education Funding Agency so any issues of impropriety are immediately investigated.

"That is exactly why the EFA has written to E-ACT requiring them to take swift action to improve financial management, control and governance. We are monitoring the situation closely and will take any further action necessary."

Wednesday 13 February 2013

Acad£mies and Lies - lessons from the movies




As the struggle of Gladstone Park Primary parents against a forced academy hots up and attention also turns to Kensal Rise Primary, this film shows how a community rose up in defence of its schools. The bullying of the DfE is challenged by parents and school staff. With more attempts at forced academies provoking revolt across London the Guardian, Independent and the Evening Standard (see below) have woken up to what is happening. LINK to coverage in yesterday's Evening Standard.

 As with the closure of Central Middlesex Hospital, Brent Labour councillors have been slow to react. As representatives of local residents who have shown such passionate support for their local school and commitment to the role of the local authority, surely they must state loudly and clearly that they oppose forced academisation and are confident (as Ofsted said - see below) in the capacity of the present leadership and management to improve the school and deal with the weaknesses revealed by the recent inspection.

Tuesday 25 September 2012

Clive Heaphy spoke out on Brent school victims of IT scams

Yesterday I tweeted about Brent schools being featured on Panorama's 'Reading, Writing and Rip-offs' last night. This was based on a circular from the council to headteachers.

In fact Brent weren't mentioned as such but Brent schools have had similar experiences, although not as expensive as some reported.

Clive Heaphy  Brent Director of Finance (since suspended while allegations of gross misconduct are investigated) spoke to the Times Educational Supplement about it earlier this year and reported on this blog LINK
Furness Primary is being sued by a finance company for £301,083 plus interest calculated at £14,579 in April and still rising. But Brent Council said the equipment involved was worth just £9,150 when it was sold off by the finance company in February.

Kensal Rise Primary is being sued by the same company for £287,000. Both schools have made counterclaims for money they say they have already paid “in error” - £805,000 in the case of Kensal Rise. The same school has also received a more recent claim from a second finance company for £253,000.


Brent says schools have been tempted into such deals by offers of up to £15,000 “cash back” a quarter from equipment suppliers that make initial lease repayments appear more favourable than the real long-term cost. Clive Heaphy, the authority’s finance director, said that primary heads were not always “business savvy” and cannot always “see through” such offers.
Given the political disagreement about academies Heaphy was very clear with his warning:
 “Inevitably there is a recipe there for difficult times ahead and potentially for some mismanagement issues and possibly some fraud issues,” he told TES, adding that increased autonomy for local authority schools had already made it much harder for town halls to guard against them misusing public money.

“I still retain personal accountability for schools’ finances and yet I see less and less data and have fewer and fewer levers to be able to do anything about it,” Mr Heaphy said. “There is very little action in reality you can take.”

On academies he said: “The only watchdog over them is the Department for Education itself. We have no relationship with them, but who does?”

 

Monday 3 September 2012

Financial management of Brent schools in the spotlight again

Brent headteachers getting ready for the start of the new term were greeted with further press coverage of alleged school financial mismanagement at the weekend. The Times Education Supplement of September 1st  had extensive coverage of the situation in the borough LINK.  The situation had already been extensively covered here in July LINK and I returned to it later in the month LINK

The TES quotes Clive Heaphy as warning that academy conversions could make things worse:

Clive Heaphy, Brent Council’s finance director, argues that the current vast expansion of academies is going to make the problem much worse.

“Inevitably there is a recipe there for difficult times ahead and potentially for some mismanagement issues and possibly some fraud issues,” he told TES, adding that increased autonomy for local authority schools had already made it much harder for town halls to guard against them misusing public money.
“I still retain personal accountability for schools’ finances and yet I see less and less data and have fewer and fewer levers to be able to do anything about it,” Mr Heaphy said. “There is very little action in reality you can take.”

On academies he said: “The only watchdog over them is the Department for Education itself. We have no relationship with them, but who does?”
The TES reveals details about the amount of debt accumulated by two Brent primary schools through exploitative financing arrangements:
Furness Primary is being sued by a finance company for £301,083 plus interest calculated at £14,579 in April and still rising. But Brent Council said the equipment involved was worth just £9,150 when it was sold off by the finance company in February.

Kensal Rise Primary is being sued by the same company for £287,000. Both schools have made counterclaims for money they say they have already paid “in error” - £805,000 in the case of Kensal Rise. The same school has also received a more recent claim from a second finance company for £253,000.

Brent says schools have been tempted into such deals by offers of up to £15,000 “cash back” a quarter from equipment suppliers that make initial lease repayments appear more favourable than the real long-term cost. Clive Heaphy, the authority’s finance director, said that primary heads were not always “business savvy” and cannot always “see through” such offers.

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