Government money could be withdrawn from an academy after a report found "serious breaches” of its funding arrangement.

The Department for Education launched an investigation after Cuckoo Hall Primary Academy executive headteacher Patricia Sowter, headteacher Sharon Ahmet and Phil Sowter, the director of Cuckoo Hall Academies Trust, were suspended in December following allegations of gross misconduct 

This prompted the Department of Education to investigate the school, in Cuckoo Hall Lane, Edmonton.

There were allegations of safeguarding, bullying and harassment, close relative recruitment, “inflating” SATs results, disciplinary proceedings without the chair knowing and hacking of the company’s email at the 

All three were reinstated last month, but the report has found evidence of several problems at the school in Cuckoo Hall Lane, Edmonton.

The investigation by the Education Funding Agency found evidence of "serious breaches" of the Cuckoo Hall Academy Trust's funding agreement” with the Government.

The report found "a significant number" of staff had started work before Disclosure and Barring Service checks - formerly Criminal Records Bureau checks - had been completed.

Of 28 members of staff and former members of staff interviewed, nine said they had been bullied, and a further ten talked about negative behaviour towards them.

Despite this, the investigation concluded that “concerns about bullying were not universal.”

There was also evidence that the trust’s policies “were not complied with” when it came to recruitment and gave an example of a family member of the executive head and suspended trustee who was hired for a different post to the one from they were interviewed for and was advertised.

The report said information gathered on SATs results had been passed to the Standards and Testing Agency.

Regarding school finances, the report said £40,000 was spent on credit cards including purchases from IKEA and “high end supermarkets”.

However, investigators found this to be “bad practice rather than misuse".

In a letter attached to the report, regional schools commissioner Martin Post wrote: “The Secretary of State is considering sending notice of her provisional intention to terminate the Cuckoo Hall Academy Supplementary Funding agreement if the steps outlined in his letter are not taken.”

The trust also issued a statement responding the report admitting "mistakes" but defending its "excellent leadership".

It said: “Cuckoo Hall Academy Trust, under the excellent leadership of Patricia Sowter, is proud to provide a superb quality education to more than 1,400 pupils across five schools.

"These high standards are acknowledged by the Department for Education and Ofsted. We are pleased that ministers have today decided that the trust, its schools and our pupils are best served by remaining under the current leadership."

It added: “The report refutes a number of unfounded allegations but we accept some of our policies and processes have not developed as they should have as the trust has grown from a single school to a five-school chain.

“We have made mistakes but we have been working constructively with the EFA to address these issues over the last few weeks. Significant improvements have now either been implemented already or are underway. This work has been complemented by a number of reviews we commissioned as soon as the allegations came to light.

“This has been a difficult period but from today we move forward as a stronger trust. We have a united board, superb teachers, wonderful pupils and supportive parents in a community we are proud to serve, and we remain committed to delivering the very best education to children in a safe, fun and positive learning environment.”

The statment added that the allegations relating to SATs results and assessments were “nonsense" and said no evidence had been produced to substantiate the "damaging" claims.

A DfE spokesperson said: “We have received allegations in respect of Cuckoo Hall Academies Trust, which we are now investigating. It would be inappropriate to comment further at this stage. We will publish the investigation report in due course.

“Academies and free schools operate under a strict system of oversight and accountability and we have consistently demonstrated that where we find failure, we will act quickly and decisively.”