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<p>There are currently 38 colleges that are subject to a notice to improve for financial
health.</p><p>The published response to the insolvency consultation stated that, using
data and assumptions available at that time, over the first ten years of the insolvency
policy (commences April 2019), an additional 63 colleges could meet the current triggers
for a notice.</p><p>The Education and Skills Funding Agency (ESFA) has published an
Early Intervention and Prevention strategy, which is available at the following link:
<a href="https://www.gov.uk/government/publications/college-funding-early-intervention-and-prevention/early-intervention-strategy"
target="_blank">https://www.gov.uk/government/publications/college-funding-early-intervention-and-prevention/early-intervention-strategy</a>.
This strategy outlines how the ESFA works with colleges where data shows that they
could be at risk of failure.</p><p>In addition, the ESFA is improving and increasing
the financial information that it requests from colleges, which will be analysed by
integrated expert teams, and is developing a strengthened approach to intervention
and prevention approaches in advance of financial crisis.</p><p>The department is
also updating improved guidance for college governors, due later this month, to highlight
governors’ fiduciary duties. They are in the process of appointing National Leaders
of Governance to deliver sector-led support (alongside the National Leaders of Further
Education). The Further Education Commissioner’s team has also expanded coverage of
‘diagnostic visits’ to colleges, which also highlight potential issues in advance
of crisis, and offer recommendations for support and improvement.</p><p> </p>
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