Book excerpt: This Public Accounts Committee report examines the Education Funding Agency and Department for Education 2012-13 financial statements. Since it was set up in April 2012, the Education Funding Agency (the Agency) has succeeded in getting money to education providers on time. In 2012-13, the Agency distributed £51 billion of capital and revenue funding for 10 million learners to local authorities, academies, academy trusts, further education institutions, sixth-form colleges and other types of education providers. Between 2012-13 and 2015-16, the Agency expects that the number of all education providers it funds will increase by around 50% to almost 12,000, of which nearly 7,000 will be academies. At the same time, the Agency plans to reduce its administration costs by 15%, a huge challenge. It should improve efficiency, transparency and accountability in the education sector, especially in respect of the growing number of academies, but lacks the systems and data it needs. The Agency has not yet achieved an acceptable level of compliance with its reporting requirements and the Committee finds it is too reactive and does not spot risks or intervene in schools quickly enough. Not enough is known about conflicts of interest in academies and the risk they pose to the proper use of public money, not The Agency has no way of knowing whether academy chief executives and trustees are 'fit-and-proper persons', and there are flaws in the methodology used to consolidate the accounts of academies, as well as data quality issues, which undermine accountability.