The government have said they will be taking active steps to tackle the perception that support is only available to colleges in trouble, apprenticeship and skills minister Gillian Keegan has said.
In a statement following the publication of the Ney Review into college financial insight, Ms Keegan said that the alignment between the FE commissioner and the Education and Skills Funding Agency (ESFA) will be strengthened.
She said: "The FE commissioner has played a critical role in bringing FE practitioner expertise into government and successfully working to strengthen the leadership and governance of colleges. I intend to maintain the role, reporting directly to ministers as a public appointment, but strengthening alignment with the Education and Skills Funding Agency (ESFA), and placing its civil service support team there.
"This change will further empower and develop the ESFA’s territorial teams and enable them to draw upon practitioner expertise. There will be a regular strategic dialogue with each college board around priorities. This will reduce the perception that support is only available to colleges in trouble, and focus not just on prevention but on building success and outstanding practice."
The principal conclusion of the review was that the government must have a strategic relationship with FE colleges – something Ms Keegan said she endorsed. She also said she endorsed a "collaborative approach" to driving improvement forward.
News: Ney review on college financial oversight published
More: 8 things we learned about college finance
Background: DfE to review how it monitors colleges’ finances
Financial data collected from colleges
In her report, Dame Mary recommends further action to improve the effectiveness of the financial data collected from colleges.
Ms Keegan highlighted the ESFA's decision to adopt a new integrated single data return – and said that the department has commissioned a July financial collection to assess the financial impact of Covid-19 on the sector and individual colleges.
She said: "This will enable us to continue to work with governing bodies to mitigate financial risks arising from COVID-19, avoid failure and help reduce intervention, while remaining ready to act decisively when necessary. This will be supported through additional requirements for colleges to be transparent – including protection for whistleblowers – through our audit code of practice and grant conditions."
Keegan said that from 2020-21, all colleges will be required to publish their whistleblowing policy externally. The department is also considering the link between the ESFA’s financial assessments and Ofsted judgements.
The role of leadership
In Dame Mary's report, she said that failures of financial stewardship have at their core weaknesses in leadership and poor adherence to effective governance arrangements.
Ms Keegan said that the DfE is investing in learning and development programmes for those in key governance and leadership roles in colleges through the Education and Training Foundation and Oxford SAID business school. She said that up to £4.5m had been allocated for the current financial year, which will include a new programme of learning and development for governance professionals.
A new vision for FE
Ms Keegan said: “Now more than ever, it’s vital that colleges ensure students gain the skills they need to progress and meet the needs of businesses and their local communities.
“I welcome this independent review by Dame Mary Ney and her call for a clear vision for the sector. We have started to put in place changes that address many of the recommendations in the report, including strengthening oversight of the financial health of the sector and increasing the alignment between the Education and Skills Funding Agency and the FE commissioner.
“I’ve seen first-hand the exceptional work done by colleges across the country, and know what a key role they will play to support our economic recovery. I look forward to working with them and the wider sector to achieve a new vision for FE.”
Dame Mary Ney, author of the review said: "I was pleased to undertake the review. FE colleges play a vital role in building local economic prosperity and in ensuring students develop to their full potential.
“The overarching finding from my review was a need to shift to promoting the strategic role of the sector and to nurturing and supporting all colleges on an individual basis thus reducing the risk of financial problems recurring.
“I am encouraged that the recommendations from the review are now being taken forward by the department, as part of the development of an ambitious strategy for sector. I wish all in the sector well in their endeavours.”
