Clawback disputes and ‘frustratingly slow’ ESFA reviews delay accounts for 4 colleges 

One college has now failed to publish financial statements for the previous three years

One college has now failed to publish financial statements for the previous three years

merger

Four colleges are yet to publish their annual accounts for 2021 – one of which has now failed to publish financial statements for the previous three years.   

Clawback disputes, last-minute and “frustratingly slow” funding assurance reviews, audits and bank loan negotiations have all contributed to the delays, according to the colleges involved.   

FE Week spotted the issue after analysing the Education and Skills Funding Agency’s annual college accounts spreadsheet for the year ending July 31, 2021, which was published this week.   

The data file contains 227 of 231 expected returns. Those missing include Brooklands College, Fareham College, Stoke on Trent College and Kingston Maurward College. 

Government rules state that colleges must publish their audited accounts in an easily accessible location on their website no later than January 31 each year to “maximise transparency and to support accountability”.   

This is the third year in a row that Brooklands College has failed to file financial statements. The college, based in Surrey, was stung by a £20 million apprenticeship subcontracting scandal back in 2018.   

Brooklands College has been negotiating repayment demands from the ESFA ever since.

Principal Christine Ricketts said the college is “well advanced in discussions to resolve outstanding issues and we are expecting to publish the accounts before the end of this financial year”. She added that the college “continues as a going concern”.

Fareham College in Hampshire was a surprising inclusion on the list of colleges to not yet publish accounts. The college is judged ‘outstanding’ by Ofsted and has no financial notices to improve from the government.   

A spokesperson told FE Week the college received a “random sampled ESFA funding assurance review” very late in the normal cycle, the pace of which to conclude has been “frustratingly slow despite best endeavours by the college to work proactively with the ESFA”.   

“The delay to the publication of the college financial statements for 2020/21 is simply down to ensuring correct procedures are followed for sign-off of the accounts and is not a reflection of the financial health of the college,” the spokesperson added.   

Kingston Maurward College, a land-based college in Dorset, has faced financial challenges over the past couple of years due to a big hit on its commercial income during the pandemic and associated lockdowns. 

The college received a financial notice to improve as well as an FE Commissioner visit earlier this year and is currently undergoing a structure and prospects appraisal.   

Principal Luke Rake told FE Week his college breached loan covenants due to the income impacts of Covid-19, and as a result “our banks and ourselves have been in conversations for some time as to how these breaches should be treated”.   

This is taking place alongside a “very amicable discussion about refinancing to consolidate loans and give the college an even better financial position in conjunction with our strong post-Covid recovery,” he said.   

Rake added that both banks have been “exceptionally supportive” but until these discussions are complete the college “is not in a position to fully sign off the accounts”. 

Lastly, Stoke on Trent College said the delay to its accounts is due to the “finalisation of an ESFA funding audit”.  

A spokesperson told FE Week this has now been “successfully completed” with a “very small clawback of just over £250”. The accounts are expected to finally be signed at the end of this week. 

Stoke on Trent College had spent six years in government intervention, partly because of a £20 million bailout in 2018, but the ESFA lifted its financial notice to improve in May 2021. 

The college has been on the mend and recorded an underlying operating surplus of £165,000 in its 2020 accounts.   

The college’s self-assessed financial health grade for 2019/20 was ‘outstanding’, and the FE Commissioner’s team praised the college that year for being on a “strong trajectory of improvement”. 

Latest education roles from

Senior Co-Chief Executive Officer

Senior Co-Chief Executive Officer

Scholars' Education Trust

Deputy Principal, Curriculum & Quality

Deputy Principal, Curriculum & Quality

City College Plymouth

Group Principal & Chief Executive

Group Principal & Chief Executive

Windsor Forest Colleges Group

Regional Education Directors

Regional Education Directors

Lift Schools

Sponsored posts

Sponsored post

Confidence, curiosity, and connection: How colleges are building learners for life

Acting as the bridge between school and adulthood for many young people, colleges play a powerful role in shaping...

Advertorial
Sponsored post

A Decade of Impact: Multicultural Apprenticeship Awards Celebrate 10 Years of Inspiring Change at Landmark London Event

Friday 7th November 2025 - Over 700 guests gathered at the Hilton London Metropole for the 10th annual Multicultural...

Advertorial
Sponsored post

EPA reform: changes inevitable, but not unfamiliar

Change is coming and, as always with FE, it’s seemingly inevitable. I’ve spent over 20 years working in the sector....

Advertorial
Sponsored post

Funding Is Flowing, Demand Is Rising — It’s Time for FE to Deliver on Green Skills

As the UK races toward net zero, the government says it wants to back 2 million green jobs by...

Advertorial

More from this theme

Colleges

Finalists revealed for 2025 Good for Me Good for FE awards

Judges have selected 24 college staff, students and projects for this year's awards

FE Week Reporter
Colleges

Colleges take £20m slice of OfS capital funding

134 colleges awarded one fifth of £92m pot to 'address the government’s industrial strategy and priority sectors'

Anviksha Patel
Colleges

South Devon job cuts turned college finances to ‘small surplus’

The college's reserves have been 'depleted' to pay for capital costs due to low income in recent years

Josh Mellor
Colleges

Newbury College considers merger after FE Commissioner intervention

Decision to be made on the college’s future this spring

Anviksha Patel

Your thoughts

Leave a Reply

Your email address will not be published. Required fields are marked *