Weston freed of ‘traumatic’ NTI – but finance probe continues

Weston College is now free of the financial intervention triggered a year ago when multi-million pound payments to ex-principal Sir Paul Phillips were exposed.

A separate probe, by the government’s counter fraud team, continues.

The south west college’s financial notice to improve (NTI) was officially closed this week following its latest visit from the FE Commissioner in the summer.

College leaders proved they have strengthened governance and audit procedures, and remuneration processes for senior staff.

Principal Pat Jones, appointed in July 2024, said the saga has been “traumatic for colleagues” and moving out of intervention is a “significant step in the journey of putting this behind us”.

However, the Department for Education told FE Week its investigation into “other aspects” of the college’s historical finances is ongoing.

Weston College was placed in intervention last May after fraud investigators found governance failures around the disclosure of financial information including high pay packages to Phillips after his retirement.

DfE sent auditors from BDO to examine “other aspects” of financial controls at the college. 

College leaders said they have “fully cooperated” with BDO during its probe and Jones said its focus was related to “past issues dating back to a period concluding in summer 2023”.

‘This has been traumatic for colleagues’

In 2023 FE Week revealed that Weston College’s governing board had created a “presidential” role for Phillips ahead of his retirement.

The revelations triggered a government probe, causing board chair Andrew Leighton-Price to step down and FE Commissioner adviser Tim Jackson taking the helm as interim chair. Jackson remains in post.

FE Commissioner Shelagh Legrave’s long-awaited report earlier this year detailed how £2.5 million was paid to Phillips and kept off the books over a six-year period through a combination of bonuses, allowances and benefits, including a £909,000 retention payment.

Legrave also revealed the board circumvented standard payroll procedures to directly pay Phillips and provided partial information to external auditors.

Legrave made 13 recommendations to the college, including putting in a “formal” scheme of delegation for the board or committees to approve senior pay approval and banning the remuneration committee chair being the same individual as the board chair.

“Significant” changes were approved by the board after the FEC’s visit in June 2024 to strengthen governance, improve oversight and due diligence. 

Jones said she was “thrilled” and called the NTI closure a “significant step” to putting the scandal behind the college under a new executive leadership team and governing body.

“Competent, transparent and strong governance is the best assurance for any public institution (colleges or other) in avoiding anything like this in future,” she said.

“We hope that all colleges use the lessons of our past to validate their own governance arrangements and organisational controls.”

Jones added: “On behalf of all within the college, I extend my sincere gratitude to our valued stakeholders, partners, and wider community for their unwavering support during this period.”