Catholic academy chain nearly £10 million in the red, as accounts reveal it also broke government financial transaction rules

St Ralph Sherwin Catholic Multi-Academy Trust sees finances slide from position which was reported as already the worst in the sector as of last year.

 

A 25-school Catholic multi-academy trust has run up nearly £10 million of debt within its core operating budget, while also having to admit to breaking several government rules in its handling of its finances, its latest accounts disclose.

St Ralph Sherwin Catholic Multi Academy Trust, which is based in Derby and ultimately controlled by the Catholic Diocese of Nottingham, saw the debt in its General Annual Grant funding account rise to £9.2 million in 2024-25 – despite the chain having been under a Notice to Improve from the government since 2023.

The trust had only £20,000 in available cash at the end of the financial year, the financial statements also disclose.

The situation has prompted the auditor reporting on the accounts to state that the trust’s ability to continue to operate is contingent on “the successful implementation of a deficit recovery plan and the ongoing financial support from the Department for Education”.

The trust states in the accounts, which were signed off in December, that it was “in the process of undertaking a significant organisational restructure to reduce staffing costs and bring expenditure more closely in line with levels recommended by the Department for Education”.