An academy trust broke funding rules after paying for its head to go on Botox and aromatherapy training courses, documents detailing the findings of a government investigation state.
The government probe into Dorrington Academy trust in Birmingham also found “excessive spending” on gifts – such as a Harrods’ hamper – and “luxury hotel stays”. Staff were also given “aromatherapy treatments”.
Recent annual accounts for the single-academy trust also show that a £120,000 consultancy contract had an “indemnity” linked to it that protected the “recipient against costs” incurred in connection with “any potential proceedings” over the deal.
Auditors say this also broke funding rules.
The trust has been issued with a government notice to improve on “financial management and governance grounds”, seen by Schools Week and due to be published today. The school informed staff of the notice this morning.
The notice to improve said the trust’s former headteacher and accounting officer, Loretta Barratt, had “failed to uphold their personal responsibility to parliament by not ensuring high standards of probity in managing public fund”.
It added: “Irregular spending was identified, including expenditure on luxury hotel stays, a Botox course, aromatherapy courses and a plastering course, none of which align with the 7 Principles of Public Life (Nolan Principles).”
Barratt did not respond to requests for comment.
Botox courses… for training
The notice to improve – issued in November – said government officials launched “an investigation into potential irregularity” at Dorrington over financial “non-compliance”.
The investigation ruled the payments were “novel, contentious and repercussive”. But the “trust failed to refer these transactions” to the Education and Skills Funding Agency (ESFA), as required.
It also “continued to offer aromatherapy treatments to staff”, even though auditors highlighted in 2021 “that the provision of cosmetic procedures was irregular”.
Schools Week understands Dorrington paid for Barratt to attend aromatherapy and Botox courses as part of her training.
A spokesperson for the trust said while it “continues to be in a strong position financially”, it has “not always met the high standards that should be expected of us when it comes to how our school’s finances have been managed and spent”.
A “huge amount of work has already been undertaken”, and the warning notice “gives us the opportunity to show that our new leadership team will continue to do things in the right way for the right reasons”.
Dorrington is also working with the government and its legal team in “exploring whether some of the former transactions can be reversed”.
Conflict concerns over Harrods gift
The investigation also uncovered “excessive spending on retirement gifts and a Harrods’ hamper for a consultant”.
The consultant is said to have “had a direct role” in Barratt’s “performance management, leading to a real and perceived conflict of interest that the trust did not adequately consider”.
Dorrington also failed to maintain “adequate documentation”, appropriate reporting or seek the approval of the ESFA for related-party transactions.
The trust had a majority of members who were also trustees, but that has since been resolved.
Legal ‘indemnity’
Dorrington’s accounts for 2023-24, published last month, show auditors flagged further funding rule breaches. One was over a “two-year consultancy contract” worth £120,000.
The arrangement “was not subject to a formal tendering or value-for-money process”. Despite this, “the whole of this contract is understood to remain payable”, accounts added.
When the deal was signed off, an indemnity was given that protected “the recipient against costs incurred in connection with any potential proceedings taken in connection with matters arising as a result” of their role at Dorrington.
This did not receive ESFA approval. Yet the “indemnity is still in place”. Accounts do not show who was given the contract.
However, the services “are not being used after the senior team enquired into the circumstances”, the accounts add.
Bid to reverse payments
The Dorrington notice highlights government concerns “in relation to the breadth of evidence demonstrating a lack of effective practice in approaches to financial management at the trust”.
The Department for Education said the notice followed “serious breaches” of academy rules and would “only be lifted when we have strong, evidence-based assurance that similar breaches will not take place”.
A Dorrington spokesperson highlighted that the government recognised the “positive action the trust has recently taken to address the concerns”.
Barratt, who retired in August, now works as a “business and education leadership consultant”.
She was approached for comment through her website and publishers. She published a book last year titled: “If The Gravy is Good, Then Lick the Plate.”
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