Is it a crisis for LIPA?

Approximately four months ago, Liverpool John Mores University (LIPA's funding institution) and an audit team from The Higher Education Funding Council for England, completed a report on LIPA.

Amongst matters raised by the audit were, criticisms of accountability, governance and financial arrangements. LIPA have had a series of meetings to avert a crisis as the findings of the report could jeopardise the public funding for the school. The majority of this comes from HEFCE, which in this case allocates central government money through LJMU.

Dr. Michael Brown vice-chancellor of LJMU confirmed that the audit report does make recommendations for improvements to safeguard public money. He said: "It is a draft report and this latest meeting is to address the concerns of LIPA to its findings." He added: "It is not unusual for audits to be challenged by the institution on factual grounds. Quite often there can be a number of challenges as the institution works to reach an agreement. The audit then results in a plan plus recommendations which the institution is expected to act upon."

A spokesman for HEFCE confirmed that the audit had taken place but was routine and part of a cycle of audits. He said: "He could not discuss the LIPA report because it was a confidential document. He could confirm that if no agreement was reached with an institution, the ultimate sanction that is available is that funding could be halted." He added: "We would not want to do that because it would result in damaging the students. Normally the threat of having funding withdrawn tends to concentrate minds."

Dr. Brown stressed that the situation at LIPA had not yet reached a crisis position.

Sir Paul still maintains close links with LIPA by attending graduation ceremonies and running master classes and is still lead patron. His company MPL withdrew from the LIPA council and the board of trustees in 1998 after the first students graduated. A spokesman at MPL said: "We first learned of the concerns about LIPA earlier this week. Sir Paul never intended to be involved in its management."

LIPA chief executive Mark Featherstone Witty said: "The confidential document is just the first draft. LIPA will not be making any comment outside recognised procedure.22/01/20001

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