Managing colleges’ financial sustainability
Public Accounts Committee
Closed
Inquiry
Following our report earlier this year on the f uture of University Technical Colleges , the Committee is launching an inquiry into the financial sustainability across Further Education and sixth-form colleges. The NAO recently reported on the Department for Education’s efforts to prevent colleges from getting into financial difficulty and …
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13
Recommendations
16
Conclusions
1
Report
1
Oral session
3
Letters
1
Event
Activity timeline 6 events
21 Sep
2021
2021
20 Jul
2021
2021
26 Mar
2021
2021
23 Feb
2021
2021
27 Jan
2021
2021
Report published
26 Nov
2020
2020
Oral evidence
Oral evidence sessions 1 session
26 Nov 2020
View on parliament.uk
Managing colleges’ financial sustainability
Eileen Milner · Education and Skills Funding Agency
Matthew Atkinson · Education and Skills Funding Agency
Susan Acland-Hood · The Department for Education
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| Thirty-Eighth Report - Managing colleges’ financial sustainabili… | HC 692 | 27 Jan 2021 | 29 | Responded |
Recommendations & Conclusions
9 results
1
Conclusion
Not Addressed
Thirty-Eighth Report - Managing co…
On the basis of a report by the Comptroller and Auditor General, we took evidence...
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Education (the Department) and the Education and Skills Funding Agency (the ESFA) on managing the financial sustainability of colleges.1
Government Response
The government response merely reiterates the content of the committee's introductory conclusion, acknowledging the report without addressing any specific points or committing to action.
HM Treasury
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21
Conclusion
Not Addressed
Thirty-Eighth Report - Managing co…
The intervention regime for colleges incorporates a number of phases, from prevention work, through early...
The intervention regime for colleges incorporates a number of phases, from prevention work, through early intervention and formal intervention to, in the most serious cases, 31 C&AG’s Report, paras 1.7–1.8 and Figure 1 32 Q 43; C&AG’s Report, para 2.10 …
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Government Response
The government response addresses a recommendation regarding intervention arrangements, committing to consult stakeholders and publish an updated college oversight policy by May 2021, but does not specifically address the descriptive conclusion provided for this item ID.
HM Treasury
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23
Conclusion
Not Addressed
Thirty-Eighth Report - Managing co…
Between November 2014 and March 2019, the ESFA paid £253 million to 36 colleges which...
Between November 2014 and March 2019, the ESFA paid £253 million to 36 colleges which had serious cashflow problems. The purpose of this emergency funding was to help the colleges maintain their teaching and other services for learners. At the …
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Government Response
The government response is a verbatim repetition of the conclusion and does not engage with the committee's observation.
HM Treasury
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24
Conclusion
Not Addressed
Thirty-Eighth Report - Managing co…
The ESFA told us that some amounts that were originally given as loans then had...
The ESFA told us that some amounts that were originally given as loans then had to be converted to grants because not enough work had been done at the outset to assess whether there was a realistic expectation of repayment. …
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Government Response
The government response provided factual information about emergency funding paid to colleges, detailing the amounts and the proportion later categorized as non-repayable, but did not address the committee's observations about repayment assessments or governance.
HM Treasury
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25
Conclusion
Not Addressed
Thirty-Eighth Report - Managing co…
In January 2019, the Department introduced an insolvency regime for colleges, which applies aspects of...
In January 2019, the Department introduced an insolvency regime for colleges, which applies aspects of corporate insolvency law and involves a special administration regime known as ‘education administration’. The overriding priority while a college is in education administration is to …
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Government Response
The government response details emergency funding provided to colleges but does not address the Committee's conclusion about the introduction of the college insolvency regime or its application to specific colleges.
HM Treasury
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26
Conclusion
Not Addressed
Thirty-Eighth Report - Managing co…
The ESFA confirmed that the administration processes for the two colleges were largely complete, although...
The ESFA confirmed that the administration processes for the two colleges were largely complete, although some statutory duties and administrative tasks remained to be done.46 It estimated that it would have spent more than £60 million on the two cases …
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Government Response
The government response provides text related to a different conclusion (emergency funding to colleges) and does not address the substance of this conclusion regarding administration costs for colleges.
HM Treasury
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27
Conclusion
Not Addressed
Thirty-Eighth Report - Managing co…
In July 2020, the government published an independent review of college financial oversight by Dame...
In July 2020, the government published an independent review of college financial oversight by Dame Mary Ney. The review made a number of recommendations with a view to improving the support individual colleges and the sector received, and enhancing oversight …
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Government Response
The government's response discusses emergency funding provided to colleges and its repayment status, failing to address the Committee's conclusion about the independent review of college financial oversight or the need for improved intervention arrangements.
HM Treasury
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28
Conclusion
Not Addressed
Thirty-Eighth Report - Managing co…
As mentioned above, between September 2015 and March 2017, government oversaw a programme of 37...
As mentioned above, between September 2015 and March 2017, government oversaw a programme of 37 area reviews of post-16 education and training provision across England. The area reviews aimed to ensure that there was the right capacity to meet the …
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Government Response
The government response discusses emergency funding provided to colleges between 2014 and 2019, but does not address the Committee's conclusion regarding the strategic challenges still faced by the college sector despite past area reviews.
HM Treasury
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29
Conclusion
Not Addressed
Thirty-Eighth Report - Managing co…
The Department has not had a clear long-term strategy covering the college sector’s role, structure...
The Department has not had a clear long-term strategy covering the college sector’s role, structure and funding in an integrated way.56 The Department said that there had been individual elements of long-term strategy, such as giving employers more of a …
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Government Response
The government's response details emergency funding provided to colleges between 2014 and 2019, but does not address the Committee's conclusion regarding the absence of a clear long-term strategy for the college sector or the plans for a White Paper.
HM Treasury
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Correspondence 3 letters
21 Sep 2021
Correspondence from Susan Acland-Hood, Permanent Secretary, Department for Education, re 38th PAC Report of Session 2019-21 – Managing colleges’ financial sustainability, dated 14 September 2021
Parliament page
20 Jul 2021
Correspondence from Correspondence from Susan Acland-Hood, Permanent Secretary, Department for Education, re PAC Report Managing Colleges’ Financial Sustainability: Recommendation 4, dated 12 July 2021
Parliament page
23 Feb 2021
Correspondence from Susan Acland-Hood, Permanent Secretary, Department for Education, re PAC Report Managing Colleges’ Financial Sustainability: Recommendation 2, dated 18 February 2021
Parliament page