Select Committee on Public Accounts Sixty-Third Report


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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