The Heathrow Aviation Engineering University Technical College has been issued with a financial notice to improve by the Education Funding Agency, due to an “apparent loss of financial control”.

The UTC, which opened in North London in September 2014, failed to balance its budget and suffered cash flow problems since 2015, according to a letter issued by the EFA on August 23 and published on the website today.

Mike Pettifer, director of the academies and maintained schools group, highlighted in the letter that failing to set a balanced budget breached the UTC’s funding agreement, meaning improvements in financial management, control and governance were necessary for it to stay in operation.

The EFA’s decision to issue the letter also triggered the cancellation of the UTC’s delegated authorities meaning all its transactions must now go through the EFA for approval.

Delegated authorities may be returned to the UTC once the notice to improve has been satisfied.

The conditions of the notice include a revised three year financial recovery plan from 2016/17 to 2018/19; an external governance review; and proof of the qualifications held by the UTC’s accounting officer, chair of governors and chief financial officer.

Mr Pettifer wrote in the letter that the EFA “will monitor progress made towards meeting the requirements associated with this notice” and will “lift the notice when the requirements set out in the annex have been met”.

If the requirements are not met, the UTC could face having its funding agreement terminated.

The challenges faced by Heathrow Aviation Engineering UTC come next in a long line of problems that have hit the 14-19 vocational institutions, including financial notices and closures.

Heathrow Aviation Engineering UTC was unable to comment by the time of publication.


Pictured: Opening of Heathrow UTC in 2014