Under fire academy head defends his role in wake of damning report

THE under-fire head of Birmingham-based Perry Beeches Academy Trust has tried to defend his record in the wake of a damning new report into the financial management of the body.

The Education Funding Agency has concluded “urgent action” is needed to strengthen the financial governance of the trust, which is responsible for five schools across the city.

The EFA instigated an inquiry after a whistleblower raised concerns over the role of headteacher and CEO Liam Nolan.

The new report said that in September last year, the EFA received allegations, with supporting evidence, in relation to the activities of the trust’s Accounting Officer (Mr Nolan), who is also a member (with no voting rights) and a trustee of the trust.

It said there was a conflict of interests within the trust, with the AO providing consultancy services through a third party private company, Nexus.

However, the report said the AO’s services were “not transparent” on the invoices Nexus submit.

Nexus is used by the trust as a business support consultancy service which assists with procurement and facilities management.

The trust pays Nexus for providing the services of a CEO for Perry Beeches. Nexus then sub contracts this role to Liam Nolan Ltd, whose sole director is the AO. The AO is also paid for “his concurrent role as Executive Headteacher separately through payroll at £120,000 per annum”, states the report.

The academy paid Nexus £72,000, including VAT in 2013/14 and £88,800 plus
VAT in 2014/15 for the CEO role.

The EFA said this arrangement was a breach of the Academies Financial Handbook (AFH) 2014.

It added that the academy could not provide documented evidence to demonstrate value for money in relation to the £1,297,711 spent with Nexus. Specifically, it said no evidence of a formal procurement exercise, including quotations and tendering, was available for expenditure with Nexus.

“Evidence confirms that the Accounting Officer of Perry Beeches multi-academy trust is being paid for his services as the CEO through Nexus and then Liam Nolan Ltd, in addition to his salary as Executive Headteacher,” states the report.

“The arrangement was approved by directors of the trust and represents a breach of the AFH 2014 which requires trusts to comply with HM Treasury’s guidance about the employment and contract arrangements of individuals on the avoidance of tax.”

It concludes: “Urgent action is required to strengthen governance, financial procedures and management arrangements and ensure trustees fully understand their obligations as company directors and charity trustees.”

In response, Mr Nolan, who revealed last month he was stepping aside as CEO, said: “The EFA report was carried out last year and we immediately took steps following their feedback to improve business processes, which included hiring a financial director in December who has been in post since December. Our action plan was signed off by the EFA last year and we are implementing it in preparation to handover the business leadership to the new CEO.”