HC Deb 07 February 1994 vol 237 cc86-7W
Mrs. Ann Taylor

To ask the Secretary of State for Education what inquiries he has undertaken or commissioned into the application of grants by the Grant-Maintained Schools Centre Ltd.; and if he will make a statement.

Mr. Robin Squire

The Department's accountancy adviser was asked to review the financial systems of the GMSC as regards the application of grant. Subsequently, a firm of accountants was engaged to review these in more detail. In addition the centre is required to provide the Department with audited accounts every year, which must include a statement as to whether the auditors are satisfied that grant income has been applied correctly.

The auditors have certified that in 1992–93 grant was used for the purposes approved by my right hon. Friend.

Mrs. Ann Taylor

To ask the Secretary of State for Education which grants to the Grant-Maintained Schools Centre Ltd. were incorrectly applied; if he will give the amounts, dates and purposes of such grants; and if he will make a statement.

Mr. Robin Squire

None. The company's accounts for 1992–93 include an auditors' certificate that grant was applied for the purposes approved by my right hon. Friend.

Mrs. Ann Taylor

To ask the Secretary of State for Education what was the name of the consultants who conducted further work into the finances of the Grant-Maintained Schools Centre Ltd. after his own Department's internal review of the company was concluded in February 1993; and if he will place a copy of its report in the Library.

Mr. Robin Squire

The consultancy was undertaken by the firm Coopers and Lybrand. Their report covers the full range of activities of the Grant-Maintained Schools Centre Ltd., more than half of which are not grant aided. It must therefore be treated as commercial in confidence.

Mrs. Ann Taylor

To ask the Secretary of State for Education if he will place a copy of the accounts of the Grant-Maintained Schools Centre Ltd. for 1992–93 in the Library.

Mr. Robin Squire

My right hon. Friend placed a copy of the accounts of the Grant-Maintained Schools Centre Ltd. in the Library last week.

Mrs. Ann Taylor

To ask the Secretary of State for Education what inquiries he has undertaken or commissioned into the financial systems operated by the Grant-Maintained Schools Centre Ltd.; and if he will make a statement.

Mr. Robin Squire

The Grant-Maintained Schools Centre Ltd. was visited by the Department's chief accountancy adviser in February 1993, and subsequently by consultants, who examined and advised on the centre's financial systems. The company improved its systems in the light of that advice, and the external auditor's report on the company's accounts for 1992–93 includes a statement that the centre is now maintaining an adequate system of internal control.