notice to improve<\/a> by the Department for Education, which also raised concerns over \u201csignificant\u201d related-party transactions that went undeclared. <\/p>\n\n\n\nOfficials found the free school failed \u201cto act\u201d to maintain viability as it breached academy rules over \u201cfinancial management and governance\u201d. <\/p>\n\n\n\n
\u201cThe trust has breached the academy trust handbook and its funding agreement over consecutive years and has not remedied the breaches despite opportunities to address them,\u201d the notice said. <\/p>\n\n\n\n
Parent donations<\/h3>\n\n\n\n Accounts for 2022-23 and 2023-24 expressed \u201csignificant uncertainty\u201d over \u201cthe trust\u2019s ability to continue as a going concern\u201d, having recorded deficits of \u00a3313,000 and almost \u00a3380,000 respectively. <\/p>\n\n\n\n
They \u201cnoted the failure of the trustees to act to address the deficit position and mitigate the risk” indicated “inadequate financial management and governance\u201d. <\/p>\n\n\n\n
The documents show the trust has been informing \u201cparents of the continual patterns of decreased funding over the past seven years\u201d. <\/p>\n\n\n\n
In 2018, it \u201cintroduced a voluntary contribution scheme for parents enabling them to make a financial donation\u201d, with amounts between \u00a310 and \u00a320 per term suggested. <\/p>\n\n\n\n
A letter has been sent out \u201cagain this year explaining how these funds are used and requesting their continued financial support\u201d.<\/p>\n\n\n\n
Concern over related-party transactions<\/h3>\n\n\n\n The notice stated forecast in-year surpluses were \u201cnot sufficient to return the trust to a positive position\u201d. Its board of trustees was \u201crequired to notify the ESFA of that fact and failed to do so\u201d. <\/p>\n\n\n\n
\u201cAdditionally, the budget forecast returns submitted by the trust in summer 2023 and 2024 were inaccurate and did not reflect the financial position of the trust,\u201d the notice continued. <\/p>\n\n\n\n
\u201cThe budgets themselves were not adequately monitored\u2026as the actual in-year surplus forecast achieved for 2022-23 and 2023-24 varied greatly from that forecast, increasing the cumulative deficit year on year, indicating a failure to act to maintain financial viability.\u201d<\/p>\n\n\n\n
But the breach officials are \u201cmost concerned\u201d by centred on the trust\u2019s \u201cfailure in successive financial statements to disclose all related-party transactions\u201d. <\/p>\n\n\n\n
They are aware of \u201csignificant\u201d transactions between the academy and Langley Hall Arts Academy, a private secondary school. <\/p>\n\n\n\n
‘Weak financial position’<\/h3>\n\n\n\n These \u201chave not been disclosed\u201d since the independent opened in September 2022, despite \u201cit using trust assets, having staff in common, and occupying buildings leased\u201d by the academy.\u00a0<\/p>\n\n\n\n
Langley Hall Primary headteacher Sally Eaton and head of commercial strategy Chris Eaton helped found the private school. They are listed as consultants on Langley Hall Arts Academy\u2019s website. <\/p>\n\n\n\n
\u201cThis letter\u2026serve[s] as a written notice to improve financial management at the trust,\u201d the notice added. <\/p>\n\n\n\n
\u201cIt reflects the weak financial position of the trust and continued concerns on governance and oversight of financial management by the board as well as the failure to disclose related party transactions.\u201d<\/p>\n\n\n\n
Langley Hall Primary was among the first 24 free schools to open under the coalition government in September 2011. Twenty-three are still operating. <\/p>\n\n\n\n
The first free schools<\/h3>\n\n\n\n Of these, eight have moved into new academy chains. Only six of the free schools are still in standalone trusts. Langley Hall Primary is one of them.<\/p>\n\n\n\n
Government data shows how mergers are changing the profile of the academy sector<\/a>. The average size of a trust has increased from 3.1 schools in 2019 to 5.3 this April.<\/p>\n\n\n\nAnalysis also suggests that the proportion of chains that are single-academy trusts has fallen from 58 per cent to 47 per cent over the past six years. <\/p>\n\n\n\n
A report by the Kreston group of accountancy firms this year said large MATs had a better financial performance and were \u201cmore confident about the future\u201d. <\/p>\n\n\n\n
\u201cSo, if the sector is trying to ensure that it is financially sustainable then the obvious solution would be for MATs to become large or at least for the smaller MATs to become larger.\u201d<\/p>\n\n\n\n
Langley Hall Primary and Langley Hall Arts Academy did not respond to our requests for comment. <\/p>\n","protected":false},"excerpt":{"rendered":"
Notice to improve issued to one of England’s first free schools amid string of rule breaches<\/p>\n","protected":false},"author":311204,"featured_media":171010,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[4],"tags":[32,28,239,2080],"post-theme":[2381],"class_list":["post-233181","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-academies","tag-dfe","tag-education-policy","tag-notice-to-improve","post-theme-academies"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t