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London Metropolitan University: Finance

Volume 502: debated on Tuesday 8 December 2009

To ask the Minister of State, Department for Business, Innovation and Skills with reference to the KPMG Report to the Higher Education Funding Council for England (HEFCE) reviewing lessons learned from the London Metropolitan University case, (a) whether (i) KMPG, (ii) HEFCE and (iii) his Department has seen in full the BDO Stoy Hayward review of London Metropolitan University’s approach to student records and the level of accuracy of its student-data completions; (b) how much money has been (A) repaid to HEFCE by the university and (B) withheld by HEFCE from the university in relation to the matter and (C) whether the Secretary of State has been informed of active or dormant legal restraints on making public (1) the BDO Stoy Hayward review and (2) the redacted parts of the KPMG review. (303384)

The information is as follows:

(a) (i) I understand that KPMG was made aware of the key elements of the BDO report during their investigation of HEFCE's handling of the London Metropolitan case.

(ii) HEFCE commissioned and saw the report in full.

(iii) HEFCE sent a redacted version of the report to me and one of my officials on 24 July 2009, 24 hours ahead of its first release in response to a request under freedom of information legislation. It has not been shared more widely within my Department.

(b) In general, funding is repaid by institutions to HEFCE by HEFCE withholding funds from its grant payments to them. HEFCE has agreed a repayment profile with London Metropolitan for the sum of £36.5 million running from July 2009 to July 2014. So far, £682,892 has been withheld by HEFCE from London metropolitan’s grant payments.

(c) I and my officials were made aware of the restraints to the publication of the BDO report and the reasons for the redactions to the KPMG report.