EFA tweaks fraud reporting requirements for academies

In the New Year academies may not have noticed a subtle change in the Education Funding Agency’s requirements for fraud reporting.

The Academies Financial Handbook in para 3.9.2 still states:

All instances of fraud or theft committed against the trust, whether by employees or trustees or third parties, above £5,000 must be reported by the trust to the EFA. Any unusual or systematic fraud, regardless of value, must also be reported.

But in January the EFA decided to change the requirements for fraud as they affecting the 16-19 bursary fund and noted on its website:

We have reviewed the advice given to institutions on the threshold for reporting cases of significant fraud to the EFA. The threshold has now been reduced from £5000 to £1200 to reflect the amounts of funds that institutions typically pay to students. Institutions must now report any suspected 16 to 19 bursary frauds of £1200+ to the EFA.

All academies should have fraud policies (as well as whistleblowing policies and fraud response plans). They (and other 16-19 provider) need to make sure their next update of their fraud policies reflects this lower threshold.