DfE hands free school notice over ‘inadequate’ financial oversight
The trust, which runs Langley Hall Primary Academy in Slough, was warned that its ability to continue as a going concern is in doubt
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The Department for Education (DfE) has issued Langley Hall Primary Academy Trust with a formal notice to improve after identifying repeated breaches of financial regulations.
In a letter dated 4 July, the DfE cited failures in financial management and governance, highlighting the trust’s ongoing deficit, weak budget planning, and lack of transparency over related party transactions.
The trust, which runs Langley Hall Primary Academy in Slough, was warned that its ability to continue as a going concern is in doubt. Its 2023/24 financial statements recorded negative free reserves of £378,745, following successive years of cumulative deficits.
The department noted: “Despite having negative free reserves brought forward at 1 September 2023 of £602,102, the trustees have not taken appropriate steps to mitigate this.” It added that reports throughout the year showed the declining position but no plan was put in place to reverse the trend.
The notice also raised concerns over the trust’s failure to disclose related party transactions with Langley Hall Arts Academy, an independent secondary school which occupies buildings leased by the trust and shares staff. The DfE said this had breached transparency rules and risked conflicts of interest.
According to the department, budget forecasts submitted by the trust were inaccurate and based on unrealistic assumptions. It accused trustees of failing to take timely action to maintain viability, and of not notifying the Education and Skills Funding Agency (ESFA) when setting deficit budgets, as required under the Academy Trust Handbook.
As a result of the notice, the trust has had key financial freedoms revoked and must seek prior approval for certain transactions, including severance payments and asset disposals.
The trust has been given a detailed set of conditions to meet, including submitting a financial recovery plan, monthly financial reports, and undergoing external reviews of governance and financial management.
If the trust fails to meet the notice requirements, it could face further intervention, including potential referral to the Charity Commission or Insolvency Service.
Education Report has contacted Langley Hall Primary for comment.