Government investigation finds 'misuse of school funds' at Westfield Academy

Paul Rosen, who stepped down as chairman of governors at Westfield Academy in Watford in December 2017, disputed "significant weaknesses" in financial management and governance at the school found by the Education & Skills Funding Agency (ESFA).

The agency received anonymous allegations in August and September 2017 relating to misuse of school funds and assets, non-compliance with procurement processes, abuse of position and lack of transparency surrounding financial information. But a police investigation revealed no criminal activity. 

The ESFA visited Westfield Academy, a mixed secondary school with a sixth form, in October 2017 and found evidence it was in breach of its financial management and governance arrangements.

A report published by the agency found financial information was being withheld from the accounting officer and current acting headteacher, Tim Body, and decisions were taken without his input.

It also found the chairman of governors, Mr Rosen, was acting “beyond his powers”, “taking on executive responsibilities” and approving payments “without the appropriate authority”.

But Mr Rosen, who confirmed he was chairman of governors at Westfield Academy when the allegations were made, told the Watford Observer he had “nothing” to do with school finances, adding: “The whole thing is a nonsense”.

He said: “No one made any allegations whatsoever. There were no allegations against me except in the report.”

When asked about financial discrepancies in the ESFA report, Mr Rosen said: “There aren’t any.”

Tim Body (left) and Paul Rosen

 

The agency report found the academy trust had purchased services from a relative of Mr Rosen costing £800 during 2015-16, which were not disclosed in financial statements.

The agency also says the chief finance officer, confirmed by Mr Rosen as Raymond “Scott” Machen, was receiving an annual payment of £22,600 referred to as an honorarium — a payment for professional services rendered nominally without charge — approved by Mr Rosen and in breach of the trust’s pay and appraisal

policy.

Mr Rosen told this newspaper Westfield Academy had put a “gagging order” on Mr Machen when he left prohibiting him from speaking about the investigation. When asked, the school refused to comment.

When the Watford Observer contacted the school to find out how we could reach Mr Machen for comment, Mr Body said: “This isn't something we want to be involved in.”

Mr Machen could not be reached for comment.

The agency says it also received allegations of harassment by a governor. Investigators reported witnessing that governor “acting inappropriately” towards a staff member and the same governor attempting to avoid financial controls by requesting payment to be made to a contractor close to him, without the necessary chief finance officer approval.

Value for money and potential irregularities were found. According to the agency, the trust spent more than £42,000 with a sports therapy and training contractor. Staff could use services without any authorisation and the costs were unknown until the supplier provided an invoice.

In most documents provided for review, no names were included, making it hard for the agency to identify irregular payments.

When asked by investigators, the report says Mr Rosen insisted did not want controls implemented.

The trust is provided with season tickets as well as a number of tickets per match worth a total of £4,420 as part of a contract with an unnamed football club, but it could not account for their use for the last academic year

Safeguarding issues were also uncovered regarding a contractor living in the staff bungalow without evidence of appropriate checks. Documentation for the contractor was subsequently provided after the visit.

The trust's governance structure was also criticised. The report found the trust only had three members, out of line with Department for Education guidance for at least five.

All members were also trustees, contravening guidance that there should be a "significant degree of separation" between members and trustees.

Westfield Academy

 

Mr Rosen said the findings in the ESFA report only arose after he left in December 2017, adding: “The financial position of the school when I resigned was very healthy and was probably one of the few schools to be running a surplus budget.

“This is backed up by the audited accounts. The problems have only arisen since I left.”

Mr Rosen told the Watford Observer the accountancy firm Hillier Hopkins performed internal audits for Westfield, adding: “They had always advised the school that the financial management was good giving the school a clean audit report prior to the inspection.

“They had also done internal work on the matters mentioned in the report with no problems reported.”

When asked to confirm this and to provide dates, both Hillier Hopkins and Westfield refused to comment.

Based on its findings, the ESFA recommended an independent review of financial management and governance at the trust, which will lead to an action plan and timeline in which it must resolve all issues.

In response to the findings, a spokesperson for Westfield Academy said: “The Education & Skills Funding Agency have recently published a report relating to Westfield Academy.

“As a result of our work with the agency over recent months, the academy has already implemented a number of changes to ensure we have robust governance and financial management systems in place.

“We are continuing to work with the ESFA to address the recommendations made in the report and will continue to work tirelessly to deliver the best educational outcomes for all our students.”

Mr Rosen said: “Following EFSA advice the school had the matter investigated by the police who exonerated the chief finance officer and myself.”

A spokesperson for Hertfordshire Constabulary said: “Police received an allegation of fraud in October 2017, which related to a school in Watford.

“A thorough investigation was carried out and it was established that no crimes had taken place.”