The principal of one of the biggest college groups in the country has stepped down with immediate effect.

John Connolly, who heads up the RNN Group, is leaving by “mutual agreement” with the group’s board, after year in which the group has faced criticisms over its leadership, the quality of apprenticeship provision and planned for a loss of over £1 million for this academic year.

A notice announcing his departure said: “John Connolly has considered for some time whether he is the right person to take the RNN Group on to the next stage of the group’s journey.

“After discussion with the board, and by mutual agreement, John will take a step down from his day to day activities with immediate effect.”

It added that he will continue to work with the board during the “transitional period” while they look for a replacement, and thanked Mr Connolly for his “contribution, commitment, professionalism and achievement in bringing the RNN Group together”.

The organisation, which incorporates Rotherham College, North Notts College and Dearne Valley College, has completed two mergers in the last four years and recently opened a £10.5 million higher education facility in Rotherham.

Minutes from a board meeting in March 2018 reveal the group planned to be facing a loss of £1.3 million by the end of this academic year.

“An initial draft budget was presented, indicating a loss of £1.3million for 2018/19, before any measures to offset income reduction,” the minutes reported.

“Income had declined by £281,000 compared to the original budget, mainly due to a reduction in 16-18 numbers, a shortfall in apprenticeships, and lower than expected HE enrolments.”

The minutes also said that all teaching staff were on 900 hour contracts, although average group sizes “had declined to around 13”. Despite the possible drop in finances, “provision for a one per cent pay award” was included in the 2018/19 budget.

Although the RNN Group has been rated ‘good’ by Ofsted since an inspection in 2013, an early monitoring visit carried out in February warned it was making ‘insufficient progress’ in managing subcontracted provision effectively.

“During a period in which senior leaders and managers oversaw two college mergers, their management of all subcontractors and subsidiary companies was not good enough,” the report warned, adding that on several apprenticeships programmes “the quality of provision was poor and achievement rates were low.”

In 2016/17, the group had 2,569 apprentices and 14,860 learners. That year, Mr Connolly’s salary was £144,000, making him the 83rd most highly paid principal. The RNN Group’s income was £47.1 million, cementing their place as the 23rd biggest college.

Mr Connolly’s resignation from a major college is the fourth in just three weeks.

Andrew Cleaves, one of the highest paid principals in the country, stepped down from Birmingham Metropolitan College on September 25. He was followed by Dame Asha Khemka, another highly paid principal, who resigned as principal of West Notts on October 1. Just last week, Joe Docherty quit as principal of the NCG group with immediate effect.

 

A recently merged college with historical cash problems has received a financial health notice to improve after the government assessed its monetary situation as “inadequate”.

The Education and Skills Funding Agency hit North Warwickshire and South Leicestershire College with the notice today following a “review of the financial plan” it submitted to the agency in July.

It will now be referred to the FE Commissioner for an independent assessment to test the college’s “capability and capacity to make the required changes and improvements”.

David Poole, the college’s finance and risk executive director, explained that the college delivered “£1 million of unfunded teaching in 2017/18 due to the funding methodology” and also saw a “decline in income from apprenticeships which mirrors the national picture”.

“We will continue to work with the EFSA to address the issues raised,” he said.

North Warwickshire and Hinckley College merged with South Leicestershire College in August 2016.

The former FE Commissioner, Sir David Collins, warned prior to this that the recurring deficits at the two separate Midland colleges were hitting finances and urged them to merge to fix this.

But it doesn’t appear to have worked. According to the ESFA’s college accounts, the merged college owed £2.5 million in exceptional financial support in 2016/17.

A total of £1.3 million of that was owed by South Leicestershire College in 2015/16 – pre-merger – and the remaining £1.2 million was taken out post-merger.

The college’s own accounts for 2016/17 show loans worth £14.2 million were outstanding.

Three loans were with Lloyds Bank, two were with Royal Bank of Scotland, and another was with the Department for Education.

Minutes from a July 2018 board meeting show that the college broke its banking covenants.

“David Poole highlighted the background to the failure to secure an operating surplus in accordance with the medium term business plan, due to the non-achievement of
income targets and complex issues relating to the adult education budget,” they said.

“As a consequence of the deficit the EBITDA covenant had been breached. The Banks had been informed of the position and further meetings were taking place shortly to discuss
the current position and the breach.

“Marion Plant reminded Members that despite the breach, the banks had both signed new loan agreements with the college.”

The minutes also stated that the college’s “cash position which had previously been stated as £3 million” was now “£1 million due to the need to absorb the drop in income”.

“The plan showed that the college would generate cash from its operating activities in 2018/19 and in the two following years and maintain a positive cash balance throughout the three year period,” the said.

“Repayment of the Department for Education loan had been factored in with repayments of £1 million in 2018/19 increasing to £2.8 million in the final two years. After 2021 the cash position would be improved by £1.3-1.5 million per year.”

The minutes added: “The Plan showed whilst there would be cash ‘pinch points’ that needed to be managed carefully, the College was a ‘going concern’.”

The college is rated ‘good’ by Ofsted.

North Warwickshire and South Leicestershire College’s financial notice said the college must now work with ESFA and the FE Commissioner and his advisers to “facilitate an independent assessment of the college’s capability and capacity to make the required changes and improvements”.

The college, which is led by principal Marion Plant (pictured), must “prepare and share with ESFA a draft financial recovery plan which should then be approved and finalised by the college Corporation after ESFA’s comments have been received by the college” by no later than November 30, 2018.

The plan must include “specific, measurable, achievable, realistic and timely activities and milestones”.

It should also “detail specific, time-bound activities that the college will undertake, and should include the outcomes of exploration into further staff savings for 2018/19 and 2019/20, which should include a thorough review of curriculum areas and their contribution”.

The plan should also include “student number projections and staff planning assumptions, and a detailed sensitivity analysis on these assumptions; for both in year savings and moving forward” as well as “actions to implement savings you have identified, manage expenditure and maintain or increase income, including specific measurable objectives for how you will ensure financial sustainability”.

The ESFA will lift the notice to improve when the college “can demonstrate a financial health grade, which is at least satisfactory evidenced by audited financial statements and finance record”.

Crisis-hit Aspire Achieve Advance spent over £1.6 million of its mostly government-funded income on professional sports sponsorship deals.

One of the deals, worth half a million pounds with Derbyshire Cricket Club, remains in play despite the launch of a police probe into the apprenticeship giant.

The company, better known as 3aaa, went into administration yesterday after the Education and Skills Funding Agency withdrew its funding following a second government investigation, as revealed by FE Week.

A new investigation by this newspaper, in partnership with The Guardian, has obtained documents which show that from January 2015 to May 2018, the now-defunct provider spent £1.6 million on sponsorship of sports clubs, including Derby County and Norwich Football Club.

The public accounts committee slammed Learndirect, the nation’s former largest FE provider, earlier this year for spending over £500,000 of public money to sponsor a Formula 1 team, which was reported on the front page of the Financial Times following a joint investigation with FE Week.

3aaa’s biggest deal has been with Derbyshire County Cricket Club, which launched a partnership in 2014. The company is its “principal partner and ground sponsor”, holding the naming rights for The 3aaa County Ground as well as sponsoring the club’s kit.

More than £480,000 has been cashed in by the club following the agreement with co-founders Peter Marples and Di McEvoy Robinson – who can be seen in the photo above.

The cricket club released a statement today to say they are monitoring the situation at 3aaa but the deal is very much still in place.

“Derbyshire County Cricket Club has been advised that principal partner, 3aaa Apprenticeships, has entered administration,” a spokesperson said.

“The club will continue to monitor the situation. At this time, our thoughts are with the staff and apprentices who are impacted and we hope a positive outcome can be achieved.

“The club are unable to make any further comment at this time.”

FE Week approached 3aaa two days before it went bust to ask it to justify its huge spend on sponsorship, considering nearly all of its income came from taxpayers’ pockets and it made a £2.5 million post-tax loss in the 18 months to January 2018.

A spokesperson acknowledged the request but didn’t respond.

FE Week made multiple attempts to contact Mr Marples and Ms McEvoy-Robinson but they have also not responded. Mr Marples has taken down his LinkedIn and Facebook page in the last couple of days.

Last year 3aaa was allocated over £31 million by the ESFA to deliver apprenticeships and adult learning.

By offering sponsorship, the company gains automatic membership to Derbyshire County Cricket Club’s ‘1870 Business Club’ – a “relaxed and informal environment where local businesses can meet, create new contacts and watch first-class cricket”, according to its website.

They can also “entertain clients with one of our matchday hospitality packages”.

A press release from April this year explained that with 3aaa’s “continued support”, the cricket club has been able to “improve facilities, as the venue looks forward to an exciting year of events, which includes hosting the world’s biggest girl group, Little Mix, live in concert on Thursday 19 July”.

As well as the deal with Derbyshire County Cricket Club, the apprenticeship provider handed over £382,000 to Derby County Football Club, which Mr Marples is a former owner of.

More than £200,000 went to Norwich City Football Club, £175,000 to Rotherham Football Club, nearly £150,000 to Leicester Tigers, and £132,000 to Reading Football Club.

The Derbyshire FA was meanwhile given £50,000, Birmingham City Football Club cashed in £46,000, Norwich Community Football Club received £28,750, and Team Rallye was given £25,000.

The ESFA launched a second investigation into 3aaa, which was formerly rated ‘outstanding’ by Ofsted, earlier this year following claims of inflated achievement rates by a whistleblower.

The first investigation was carried out in 2016 by auditing firm KPMG and found dozens of success rate “overclaims”.

The ESFA’s new findings have been referred to the police via Action Fraud – the UK’s national reporting centre for fraud and cybercrime.

The case was today passed onto Derbyshire Constabulary who will lead on enquiries.

Mr Marples resigned as chair of the Spencer Academies Trust today, which runs 17 schools across the East Midlands.

The co-founder of Aspire Achieve Advance has resigned from his position as chair of an academy trust, after the government referred his giant training provider to the police.

FE Week revealed last night that Peter Marples had the backing of the Spencer Academies Trust, even though 3aaa was put into administration after the Education and Skills Funding Agency withdrew its funding following a second government investigation.

The findings from that inquiry were then passed on to the police.

But today, Mr Marples (pictured) handed in his resignation to the trust, and its directors have accepted.

“The directors of The Spencer Academies Trust have accepted the resignation of Peter Marples as a director and chairman of the board,” a spokesperson said.

“The Spencer Academies Trust is an education charity constituted for the purposes of advancing the opportunity of children and young people across the East Midlands.  

“Vice chair Donna Kinderman will assume Mr Marples’ board responsibilities in the role of interim chair. Mrs Kinderman is a safeguarding and child development practitioner with over twenty years’ experience of working with local schools.  

“We will not be commenting further.”

Mr Marples is a multi-millionaire businessman who co-founded 3aaa in 2008. He joined the Spencer Academies Trust in December 2015 as a trustee and became its chair in the 2016/17 academic year.

The trust currently comprises of 17 schools and is taking on one more next month following a merger with the Trent Academies Group.

The enlarged group will teach 17,000 students across Nottinghamshire, Derbyshire and Leicestershire.

FE Week has made multiple attempts to contact Mr Marples but has not responded. He has taken down his LinkedIn and Facebook page in the last couple of days.

He resigned from his position at 3aaa last month in the midst of a second ESFA investigation, but continued to be its joint majority shareholder with co-founder Di McEvoy-Robinson.

More than 500 jobs and the future of 4,500 apprentices are at risk because 3aaa went bust.

This was the second government investigation into 3aaa. The first, carried out in 2016 by auditing firm KPMG, found dozens of success rate “overclaims”.

The apprenticeship provider was given over £31 million in government funding last year.

Ofsted is on the look out to recruit 10 FE experts as inspectors while it ramps up its workforce to carry out early monitoring visits of every new apprenticeship provider.

The inspectorate has been given £5.4 million in government funding to help with the mammoth task of carrying out visits at as many as 1,200 providers.

In an exclusive interview with FE Week last month, Paul Joyce, Ofsted’s deputy director for FE Skills, said it had received all the money it asked for but would not be drawn on how many extra inspectors the money might fund.

That the inspectorate is now advertising for so many experienced FE inspectors is likely to be the first sign of this funding being spent. The advertised jobs come with an annual salary of £66,705, rising to £71,705 after probation.

The job description states that Ofsted is looking for “experienced professionals with the highest levels of skill”.

Applicants are expected to have a minimum of five years’ leadership experience at a senior level in FE, as well as a “secure, deep and broad knowledge” of the sector’s issues and changes. Expertise in apprenticeships was not explicitly stated as a requirement.

A spokesperson for Ofsted said it was recruiting new inspectors to cover “the whole range of inspections” under the FE remit.

“An important part of this will include monitoring visits and inspections of new apprenticeship providers, but not at all exclusively.”

She added: “As the job advert makes clear, inspectors are expected to have relevant experience of the range of provision they inspect. Experience of apprenticeship training is obviously one relevant area.”

The Education and Skills Funding Agency confirmed in August that any apprenticeship provider which Ofsted deems to have made insufficient progress in one or more themes under review would be stopped from taking on new apprentices.

These restrictions will stay in place until the provider has received a full inspection and been awarded at least a grade three for its apprenticeship provision. Full inspections for providers who have received an ‘insufficient’ judgement will now take place within six to 12 months.

 

Ofsted is rating adult education in their monitoring visits of new apprenticeship providers – but the government doesn’t know if they’ll ban a provider if they’re making ‘insufficient progress’ in that theme alone.

In August the Education and Skills Funding Agency confirmed that any poor-performing provider with the rating in at least one of the themes under review will be barred from taking on any new apprentices – either directly or through a subcontracting arrangement.

These restrictions, applied unless there is an “exceptional extenuating circumstance”, will remain in place until the provider has received a full inspection and been awarded at least a grade three for its apprenticeship provision.

The vast majority of the monitoring visits only judge new providers on three fields – leadership of apprenticeship provision, apprenticeship training quality and safeguarding.

But a fourth category has appeared in some reports – for adult education.

Ofsted’s FE and skills handbook has a section dedicated to these early monitoring visits for new apprenticeship providers and states: “Should the provider have other types of provision (e.g. 16 to 19 study programme provision or funding for learners with high needs) that type of provision will be covered each with a separate theme.”

Other newly funded provision, such as advanced learner loans, will also be in scope for inspection.

The DfE’s rules about banning providers who are rated ‘insufficient’ in the early monitoring visit reports explicitly say it will suspend them from taking on “apprentices” but doesn’t mention what ramifications there are for adult learning, study programmes, or loans provision.

FE Week asked the department if it would ban an apprenticeship provider from taking on new learners if they were making insufficient progress just for their loans or adult education, but it couldn’t provide a clear answer.

“When an adult learning provider is found to be providing inadequate training or not making the expected progress we will not hesitate to take appropriate action,” a spokesperson said.

“This includes requiring that a provider put together a plan that will improve the quality of the education or training within a reasonable timeframe.”

Mark Dawe, boss of the AELP, criticised the government’s lack of clarity.

“It doesn’t look like as if the government’s policy has been fully thought through,” he told FE Week.

“Our view is that if a provider has made insufficient progress in adult education, then a stop on new adult education starts may be appropriate but not across all its programmes.”

There have been four early monitoring visit reports published by Ofsted so far that have judged adult education.

Northwest Education and Training Limited and Sccu Ltd both received ‘reasonable progress’ judgments in all themes, and N A College Trust received ‘significant progress’ ratings in two themes and ‘reasonable’ in the other two – including adult education.

The Education and Skills Partnership Limited was found to be making ‘insufficient progress’ in two themes, but ‘reasonable’ in the other two, again including for adult education.

As revealed by FE Week last month, the government has coughed up the full £5.4 million Ofsted requested to visit all new apprenticeship providers as it cracks down on poor provision continues.

Potentially as many as 1,200 providers could now be in scope for a two-day monitoring visit.

FE Week understands that around 30 of those have newly funded adult education funding, which will be in scope for inspection.

Crisis-hit Aspire Achieve Advance has gone into administration – putting 500 jobs and the future of 4,500 apprentices at risk, FE Week can reveal.

The company, better known as 3aaa and one of the biggest apprenticeship providers in the country, has come to the end of its sale process and multiple bids were made.

However, it is understood that a suitable deal could not be reached, and as a result, 3aaa has now gone into administration.

The training provider, which made a £2.5 million post-tax loss in the 18 months to January 2018 and was loaned £5.5 million by Beechbrook Capital in April this year, is under investigation by the ESFA for a second time following claims of inflated success rates.

The Department for Education has now referred 3aaa to the police.

Following administration, the ESFA will become responsible for 3aaa’s 4,500 learners and tasked with finding them new training providers.

Around 500 jobs could be lost.

“The directors of 3aaa (the Company) have today requested receivership to administer the business arrangements of the Company with immediate effect,” a statement from the company said.

“This follows a meeting with the ESFA on Wednesday 10th October at which the ESFA confirmed there would be no further progress payments for learners on programme. This immediately removes the ability for the company to continue to operate.”

It continued: “This affects the employees, apprentices and clients with whom 3aaa has a relationship and to whom each employer of the apprentice must now determine with whom they wish the apprentice learning should take place in the future.

“The new management had hoped that the ESFA would have allowed it to have transferred the business to another qualified operator or in the worst case arranged an orderly closure of the business. The ESFA has opted not to allow that to happen so, in these extreme circumstances, the directors have no option but to take this course following this ESFA decision.”

The ESFA said: “In conjunction with recent investigations, we have issued notices to terminate contracts with 3aaa. The notices will bring the contracts to an end in a three month period, in January 2019.

“During the notice period, the suspension on apprenticeship enrolments remains in place. Our investigations will continue until all concerns have been addressed.

“Our priority is to protect the apprentices and to ensure minimum disruption to their learning. We will source high quality alternative provision as quickly as possible and support apprentices and employers to enable them to continue with their apprenticeship programme. We will write to all apprentices and employers to explain the next steps.”

Concerned apprentices, parents, or employers can contact the ESFA on a dedicated e-mail: 3.AAA@education.gov.uk.

In June FE Week revealed that the training provider’s latest Ofsted inspection, which was expected to result in another ‘outstanding’ rating, had been declared “incomplete” following intervention from the ESFA after claims were made by a whistleblower.

The agency subsequently launched an investigation into the provider regarding its achievement rates.

This is the second investigation being carried out by the ESFA into 3aaa. The first, carried out in 2016 by auditing firm KPMG, found dozens of success rate “overclaims”.

In July FE Week revealed that an independent auditor had been called in by the Department for Education to investigate its own funding agency over their contract management of 3aaa.

In conjunction with recent investigations, we have issued notices to terminate contracts with 3aaa

3aaa’s co-founders, Peter Marples and Di McEvoy-Robinson, resigned from the company last month.

It was subsequently suspended from recruiting apprentices but “instructed” staff  to not date any paperwork for “planned enrolments”.

Despite Ofsted still not having wrapped up its inspection of 3aaa, the provider claimed in its sales pitch to potential bidders that it was rated ‘outstanding’ in all fields judged in May 2018.

Earlier this week, the boss of 3aaa contacted the apprenticeship giant’s clients to “reassure” them that he’s taking the business forward as “new management”. He added that as a “precautionary measure and to do all we can to protect learners and staff against any residual risk” the company is “having very early stage and initial conversations with other reputable providers”.

3aaa received over £31 million in government funding last year and had the largest allocation for non-levy apprenticeships – standing at nearly £22 million.

The provider is also the biggest provider of 16-18 apprenticeships. In 2016/17 it had 1,720 16-18s leave or finish their apprenticeships, and 810 19-23s, according to national achievement rate data.

An FE Week investigation last week found that Ofsted delayed inspecting the beleaguered provider for years despite its achievement rates plummeting when apprentice numbers nearly quadrupled and severe safeguarding concerns were brought forward by a whistleblower.

The chair of the influential Public Accounts Committee, Meg Hillier, criticised the serious failing by the education watchdog and expressed fear that the situation mirrors the Learndirect scandal.