The Department told us that it reviewed surpluses on an individual trust basis, particularly those reporting higher levels of reserves, and challenged trusts with reserves that are not designated for a particular educational purpose. We have previously reported that the Department does not have information on whether academy trusts have earmarked reserves for particular projects. As such, we have recently requested the Department writes to us with details of the specific actions it has taken when it has concerns about academy trusts holding significant reserves and whether large reserve balances are justified.33