Source · National Audit Office

Financial sustainability of schools in England

This report examines the financial sustainability of mainstream schools in England.

Published: 25 Nov 2021 Recommendations: 4 Type: Value for Money NAO confirmed: 4 Department: Department for Education
Dept: Department for Education Topics: Commercial and financial managementEducation, training and skillsFinancial sustainabilitySchools nao.org.uk →

Recommendations

4 items
4 accepted 4 implemented

Recommendation 1

Addressee: Department for Education · Source location: Page 14, paragraph 18, point a

We recommend that the Department and the ESFA should take the following actions:
a) Assess the impact on provision of the various measures adopted by schools in response to financial pressures, for example reducing staffing levels or
changing support for pupils with special educational needs and disabilities. This work should include quantitative analysis and qualitative research to
understand how schools have adjusted their provision and identify lessons and good practice.

Response position: Accepted

Delivery: Implemented · 11/2024 · Confirmed by NAO

Recommendation 2

Addressee: Department for Education · Source location: Page 14, paragraph 18, point b

b) Establish why maintained secondary schools are under particular financial pressure. The Department and the ESFA should use that information to identify any further action needed to support secondary schools to be financially sustainable.

Response position: Accepted

Delivery: Implemented · 11/2024 · Confirmed by NAO

Recommendation 3

Addressee: Department for Education · Source location: Page 14, paragraph 18, point c

c) Investigate why some academy trusts have built up substantial reserves. The ESFA should use that information to develop its understanding of why
trusts are acting in this way, seek assurance that levels of reserves are acceptable, and take action where it has concerns that this is not the case.

Response position: Accepted

Delivery: Implemented · 07/2022 · Confirmed by NAO

Recommendation 4

Addressee: Department for Education · Source location: Page 14, paragraph 18, point d

d) Develop further their performance management systems so they can effectively monitor and evaluate the effectiveness of their programmes to support schools’ financial sustainability. In doing this, the Department and the ESFA should:
• consistently collect good-quality data about the operation and impact of the programmes;
• have systematic internal reporting against clear performance criteria using good-quality data to judge when corrective action needs to be considered
and to evaluate impact; and
• report publicly, routinely and on a consistent basis, on the take-up and impact of the programmes.

Response position: Accepted

Delivery: Implemented · 09/2023 · Confirmed by NAO

Public Accounts Committee follow-up

1 report

The Public Accounts Committee examined this NAO report and published its own recommendations. The government responds to PAC recommendations via Treasury Minutes.