Part 6: Oversight and intervention
How DfE and ESFA oversee independent training providers.
6.1. DfE’s and ESFA’s accounting officers are accountable to Parliament for how DfE / ESFA use their funds and are personally responsible for the regularity, propriety and value for money of their expenditure.
6.2. Oversight work specific to independent training providers (ITPs) includes monitoring reviews of ESFA funding, funding assurance reviews, assessment of controls at newly contracted ITPs and financial health assessments.
6.3. DfE takes a risk-based approach to oversight and managing contracts. Resource is focused on providers where their financial accounts and other relevant data suggest that there is a risk of failure and/or overclaim of funds. The potential impact of failure on learners is also considered. We use specific triggers in our risk assessments to indicate where there may be areas of concern.
6.4. DfE/ESFA or their agents may carry out reviews, audits or investigations of ITPs, which require access to all books, records, information, explanations, assets, premises, and staff; DfE/ESFA may take copies of relevant documents.
6.5. DfE/ESFA or their agents will require, on request, any information from ITPs to meet published funding requirements.
6.6. ITPs need to notify DfE/ESFA of changes relating to their ownership.
6.7. DfE/ESFA may use intervention powers, where a breach of contract is identified, or specific financial performance or quality measures are not being met.
6.8. The priorities of any DfE/ESFA intervention are to safeguard the interests of learners and protect public funds.
6.9. Intervention activity may include:
- requirements to provide additional financial information
- requirements to design and implement an improvement plan to address quality issues/financial position, including specific targets to be met within a specified period of time
- requirements to cease using a particular sub-contractor
- suspension of learner enrolments
- termination of contract(s)
6.10. Further information on our intervention arrangements is set out in How ESFA maintains oversight of Independent Training Providers.
6.11. ESFA may conduct or commission investigations into allegations of fraud and error, theft or irregularity, relating to DfE/ESFA funded activity, in any ITP, based on information received or uncovered. DfE/ESFA may involve other authorities, including the police.
6.12. Where there is a concern relating to an ITP with charitable status, DfE/ESFA may notify the Charity Commission, reflecting the commission’s interest in addressing non-compliance with legal or regulatory requirements, misconduct, or mismanagement in the administration of any charity, and in ensuring individuals running the charity do so in compliance with their legal duties.
6.13. DfE/ESFA may refer directors of ITPs to the Insolvency Service, which may consider whether the conduct of a director is such that they are unfit to be involved in management of a company, and whether or not it would be in the public interest for a disqualification order to be sought.