APPENDIX 3
THE MANAGEMENT OF GROWTH IN THE ENGLISH
FURTHER EDUCATION SECTOR (PAC 1997-98/356)
Copy of a letter and a press notice from
the Chief Executive of The Further Education Funding Council
Part of my evidence to the Public Accounts Committee
(PAC) on the Comptroller and Auditor General's report The Management
of Growth in the English Further Education Sector, October
1997, concerned the measures the Council has in place to monitor
and control franchising.
In my response, I mentioned to you that the
Council has very tight controls to ensure that colleges follow
the guidance set out in Council circulars and that my officers
investigate any issues that come to their notice. I made it clear
to you that, although there have been concerns expressed about
franchising as a way of delivering the further education curriculum,
the recent inspection report concluded that there was nothing
inherently wrong. Nevertheless, if our investigations show that
colleges have overclaimed or claimed for ineligible provision,
then funds are always clawed back.
My purpose for writing to you now is to enclose
the press release that the Council issued last week on Halton
College. Members of the PAC will no doubt have seen the recent
press coverage of the Council's investigation at the college.
This is a very good example of how the Council operates when concerns
such as these are brought to its attention. In this particular
case the Council, in conjunction with the National Audit Office
(NAO), visited the college in early April 1998 to investigate
the complaints received. As a result of that visit, the Council
commissioned a firm of auditors with forensic and further education
experience to carry out an investigation.
The interim report of that investigation has
been shared with Halton College's governing body and the action
described in the press release is the result. As Accounting Officer,
I take these matters very seriously and have put in place all
the necessary arrangements to ensure that public funds are properly
accounted for. Any overclaimed or ineligible funding will be clawed
back by the Council.
That does not of course reduce the seriousness
of incidents such as this but I hope the Council's firm and urgent
action in this case confirms our determination to tackle problems
when they do arise.
Chief Executive
Further Education Funding Council
1 June 1998
PRESS RELEASE
The Further Education Funding Council
HALTON COLLEGE
At a meeting of Halton College's governing body
on Friday 22 May, David Melville, chief executive of the Further
Education Funding Council, presented the emerging conclusions
of the investigation undertaken by Robson Rhodes on behalf of
the Funding Council.
He also confirmed that no evidence was found
to support the allegations linking particular governors to the
procurement of computers or to the college use of hotels.
As a result of the meeting, the college has
decided upon a range of interim measures pending the production
of a final report by the investigating team.
These include reviews of their financial control
systems with particular regard to the principal's power to incur
expenditure, authorisation of funding claims made to the Council
and the effectiveness of governance and management.
In addition, the College will continue to make
available to the Council and its representatives all data and
provide them with unfettered access. The college is to report
progress on these points to the Council within six weeks.
The chairman of Halton's governing body has
suspended the college principal and vice-principal until the investigations
have been completed and has appointed an acting principal/accounting
officer in the meantime.
Following the meeting David Melville, chief
executive, said:
"The meeting was positive and constructive.
The Council approves of the measures the college is taking at
this stage. The Council's investigations are continuing."
27 May 1998
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