One of the biggest academy trusts fell foul of a “historic fraud” over a number of years.
Star Academies, which runs 36 schools, uncovered the “significant financial irregularity” last year.
But the trust stressed it “acted swiftly and appropriately, commissioning an independent investigation, reporting the matter to the relevant authorities”. It said the full amount had been recovered.
A Star spokesperson said: “We can confirm that a historic fraud was identified and fully investigated.
“Internal controls have been strengthened. There is no ongoing risk to public funds.”
‘All reasonable steps taken’
The trust’s accounts for 2024-25 show the “significant financial irregularity” was identified during the financial year, but it had taken place “over a number of years”.
“The trust continues to operate in accordance with the principles of regularity, propriety and compliance, and has taken all reasonable steps to ensure the issue has been fully addressed,” accounts added.
The academy trust handbook states trustees must inform the Department for Education (DfE) “as soon as possible of all instances of fraud, theft or irregularity exceeding £5,000 individually, or £5,000 cumulatively in any financial year”.
Fraud deemed “unusual or systematic” must also be reported, “regardless of value”.
43 fraud reports
The handbook also says the DfE can investigate “actual or potential fraud, theft or irregularity in any academy trust”.
Last year, Schools Week revealed the Wembley Multi-Academy Trust lost almost £400,000 through a cyber-scam.
Micon Metcalfe, a school business expert, said the case was a “warning and reminder” of the risk posed by fraudsters.
“Anybody can be susceptible to this type of fraud. The only way to avoid it… [is] to be very vigilant around your controls for changing bank account details.”
The department’s academies sector annual accounts show 43 fraud allegations were reported by trusts for 2022-23, the latest year available, down from 55 a year earlier.
