Dfeclaimforms

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.

Step 01

Secure the accounts

Change passwords, suspend affected payment access and tell your bank as soon as possible if funds may still be recovered.

Step 02

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.

Step 03

Report to the scheme

Complete the loss of money claim form and attach the evidence listed on this page.

Step 04

Review the controls

Record what failed and what has changed, so that the governing body can see the improvements made.

Business office with bank statements on a desk

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

Laptop screen showing a suspicious email
Fraud

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 box and counting tray on a table
Cash

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.

Finance team reviewing payment controls

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.