An academy trust once lauded by former education secretary Michael Gove has been served with a financial notice warning from the Department for Education in the latest of a number of embarrassing developments.
The Durand Academy Trust (DAT), which runs the Durand Academy in south London, has been the subject of media coverage because of its controversial state boarding school in the Sussex countryside and a recent appearance before MPs by its colourful head teacher Sir Greg Martin.
The Education Funding Agency (EFA), which is responsible for funding and monitoring academies, has written to the trust, issuing a financial notice to improve. Though it acknowledges some improvements, the letter says there remain “significant concerns”.
Last month the Charity Commission launched its own inquiry into the associated Durand Education Trust (DET) which owns the land the school sits on, because of concerns about “a potential lack of separation” between the two separate charities.
In January Martin was grilled by Westminster’s powerful public accounts committee and asked to explain the trust’s complex arrangements, including the school’s relationship with GMG Educational Support (UK) Ltd, the management arm of private company Horizons London Ltd, which runs leisure centre facilities on the school’s site.
The committee, chaired by Labour’s Margaret Hodge, also heard that Martin earned more than £400,000, and that a dating agency in which he had an interest had been run from the academy site.
The EFA welcomed DAT’s proposal to replace Martin as the accounting officer in order to reduce conflicts of interest. All new appointments will have to be cleared by the EFA.
Sue Baldwin, EFA director of academies and maintained schools, wrote: “I am pleased that there has been some improvement in the financial management, control and governance of DAT in order to secure high quality education opportunities for the children at Durand Academy.
“I note in particular that you intend to confirm membership of a finance committee and appoint a permanent and properly qualified business manager or finance director as soon as possible. I also note that you propose to replace Sir Greg Martin as the accounting officer in order to reduce conflicts of interest. We welcome this offer and agree this would provide more transparency.
“However, there remains significant concerns at this time and therefore, I am writing with my decision to issue a Financial Notice to Improve to DAT.”
The EFA warned that if DAT failed to comply with the terms set out in the notice, education secretary Nicky Morgan could terminate the funding agreement.