An independent review of how the government monitors colleges’ finances and financial management is now under way.

The Department for Education has announced that the review, revealed by Tes in May, will be carried out by Dame Mary Ney.

The review was instigated by former skills minister Anne Milton, after Hadlow College was placed into education administration under the new FE insolvency regime.

News: West Kent and Ashford College to go into administration

Background: Hadlow College placed into education administration

FE commissioner:  'High risk' of college insolvency, warns FE commissioner

Hadlow college crisis 'went on too long'

At the time, Ms Milton told the Association of Colleges’ spring policy conference: “This went on too long without us knowing about it. You can’t always mitigate against every risk that’s out there. But it’s a good time to have an external look at those procedures that we have.”

In the wake of Hadlow and West Kent and Ashford colleges being placed in education administration by the High Court, the review will look at “the way government monitored and exercised its oversight of those colleges’ finances and financial management, and their effectiveness in practice, including the work of the [Education and Skills Funding Agency] and the FE commissioner’s team”. It will also “recommend changes that would reduce the risk of such problems recurring, taking account of colleges’ independence and the need to minimise regulatory burden”.

Dame Mary has extensive experience in local government, having served as chief executive of the Royal Borough of Greenwich and a government-appointed commissioner to Rotherham Metropolitan Borough Council.

The findings from the review are expected to be published later this year.