Using Financial Background Checks in Education

In recent years, schools and academy trusts are coming under increasing scrutiny from the Department for Education (DfE). Many have been found to be mismanaging public funds or unable to provide justification of their spending. 

There are two types of financial background check that can be carried out on senior leadership positions in education settings. Section 128 Checks, which are mandatory for independent schools, and Adverse Financial Checks. 

In this article, we’ll take a look at both in more detail. 

Section 128 Checks 

Section 128 checks are used to check whether someone has been barred from the management or governance of schools. Those served with a Section 128 Direction cannot serve on the school board or be part of the senior management team in academies.  

Section 128 Directions can be issued for any of the following: 

• Conviction of an offence under military disciplinary proceedings 

• Being found not guilty of an offence by reason of insanity 

• Conduct found to be in breach of professional standards by a professional body 

• Engaging in conduct that is aimed at undermining British values such as democracy, the rule of law, individual liberty or Mutual respect and tolerance of those with different faiths and beliefs 

Academies and independent schools must carry out section 128 checks for: 

• Trust members and trustees 

• Individuals who sit on committees or local governing bodies with delegated responsibilities 

• Staff engaged in management positions. 

Management positions usually mean headteachers and deputy or assistant headteachers. But in some situations, other positions may also require the Section 128 Check. For example, heads of departments or other senior roles within the school. Essentially, any role where school funds will be managed. 

Maintained schools should carry out a section 128 check for school governors but these checks aren’t mandatory. Individuals prevented from managing an independent school by a Section 128 direction are also disqualified from being a governor of a maintained school. 

When academies or independent schools process DBS Checks, Section 128 Checks can be requested within the check itself. This information is then provided on the DBS Certificate. Maintained schools can use the Teaching Regulation Agency’s (TRA) Employer Access Service. 

Adverse Financial Checks 

When recruiting anyone for a senior position in a school, it’s vital to ensure they are fiscally reliable. This is particularly important for governors, trustees or senior managers within academies and independent schools where funds are going to be managed.  

While Section 128 checks are mandatory for these positions additional Adverse Financial Checks can give a clear picture of someone's financial record. 

Adverse Financial Checks include information on any county court judgements, bankruptcies, insolvencies in a candidate's history as well as including a credit report.  

For staff recruited with a history outside of the UK, there are overseas civil record checks as well. These can provide similar information to Adverse Financial Checks. 

Having a complete background on the people you’re hiring can help protect you from risk in the future. For more information on Adverse Financial or Section 128 Checks, click here.