Loss of money for which the academy is responsible
Guidance for members on losses of money held or controlled by an academy, including theft, fraud and misappropriation, and how to record and report them.
From discovery to report
Move through these steps in order, and keep a note of each one.
Secure the accounts
Change passwords, suspend affected payment access and tell your bank as soon as possible if funds may still be recovered.
Establish the facts
Confirm the amount, the dates, the method of loss and who had access to the account or cash at the relevant time.
Report to the scheme
Complete the loss of money claim form and attach the evidence listed on this page.
Review the controls
Record what failed and what has changed, so that the governing body can see the improvements made.
What this category covers
This category covers losses of money for which the academy is responsible, including theft, fraud and misappropriation of funds held by the trust or school. Whether a specific loss is in scope depends on the terms of membership.
Read the membership pack before you submit a claim.
Evidence to gather
- Bank statements showing the transaction and the account used
- The payment approval trail, including who authorised it
- A description of how the loss happened, such as a fraudulent email or an altered cheque
- Internal investigation notes with dates
- Any report made to the police or to Action Fraud
Where losses usually start
Payment fraud and changed bank details
Many losses begin with a convincing request to change bank details. Verify every change by telephoning a number you already hold before paying.
Cash and petty cash handling
Keep cash counts, reconciliations and signatures up to date, so that any shortfall can be identified and dated quickly.
Questions members ask
Only losses that fall within the terms of the scheme are considered. If you are unsure whether a loss is in scope, contact the team before you submit.
Yes. Where a bank may be able to recover or freeze funds, contact it immediately, then record the steps you took and the times.
The governing body or a delegated officer should approve the submission in line with the trust's financial procedures.
Strengthening controls
Dual authorisation for payments, regular bank reconciliations and clear limits on cash holdings reduce the chance of loss. Review these controls each year and after any incident.
More answers are in the frequently asked questions.