Whistleblowers: LIPA must sharpen act

Funding chiefs have demanded a number of improvements to ensure that the Liverpool Institute of Performing Arts can account properly for the public money it receives.

Meanwhile, a series of high-profile resignations has stoked up staff calls for a full external inquiry at the "Fame" school set up by former Beatle Sir Paul McCartney.

The THES reported last month that LIPA had been criticised privately for flaws in its management, governance and accountability arrangements in a draft joint audit report by the Higher Education Funding Council for England and Liverpool John Moores University, LIPA's formal university partner.

Hefce has now confirmed that it has made a number of recommendations for improvements at LIPA and that it will monitor progress over the next few months.

"The audit is designed to help LIPA make the transition from a private body required to comply only with the provisions of the Charities Act and the Companies Act to demonstrating that it meets the more demanding public accountability standards applicable to the higher education sector," a Hefce spokesman said. "The report and recommendations naturally reflect this.

"LIPA has responded positively to the report, and we look forward to advising them on implementing the recommendations in the coming months. WeI have jointly offered to attend any meetings of the audit committee or the LIPA council at which the report is tabled."

Meanwhile, unrest among staff at the institute has escalated. After last year's departure of Patrick McKenna - the chair-designate of the governing council who described LIPA's strategic review as "complete rubbish" - the school's academic leader has also resigned in a protest against LIPA's management. In a memo to staff, director of learning David Price said:

"Events over the summer (when Mr McKenna resigned), and the process of restructuring, have meant that I see the way to achieve our goals quite differently to the principal and council. That makes for an untenable situation." Mr Price, who officially left as of December 31 2000, declined to comment.

This week, Ian Gardiner resigned his post as teaching staff representative on the governing council. He protested that his position as a mere "observer" rather than a full council member contravened best practice in higher education. He wrote to council members: "Despite my attempts to present you withI concerns from teaching staffI our voice carries no weight or significance for you". LIPA chief executive Mark Featherstone-Witty said council minutes show his criticisms to be "untrue".

Staff have been unhappy about the role of special advisers to the council. Solicitor Rupert Grey has long been a member of LIPA's trust and is a special adviser to LIPA's council. His legal firm, Crockers Oswald Hickson, where Mr Grey is a partner, is LIPA's legal firm. James Dimmock has long been a financial adviser to the council. Mr Dimmock is senior partner at Pannell, Kerr, Forster, which has been LIPA's longstanding external auditor. Mr Featherstone-Witty said their positions will be reviewed "although good practice has little to say about this, particularly when the institute is a private provider of higher education, as we are". He stressed that there is nothing illegal about the situation and no suggestion of wrongdoing.

Mr Featherstone-Witty would not comment on the findings and recommendations of the report until it was completed. He said it was at a fourth draft, demonstrating the situation's complexity.

He said: "We have more than 140 staff here - most are either content with the progress LIPA has made and continues to make. It is true we are going through a period of change, which is rarely, if ever, easy."

Want to blow the whistle?
Contact Phil Baty on 020 7782 3298 or email him.