Risk-based regulation of financial continuity
The Inspectorate annually (more often if necessary) assesses whether any financial risks are present at governing bodies or institutions that could jeopardize the continuity of education.
The governing bodies send their annual report to the Education Executive Agency (DUO) by 1 July. The Inspectorate carries out an automatic risk detection procedure on the institutions’ key financial indicators. If these indicators are below certain values, then there may be a financial risk. In this case, we will conduct further analysis. We occasionally detect risks after receiving a notification.
If we suspect financial risks, then we conduct further analysis. To this end, we may request a governing body to supply us with additional information. If we detect a threat that may jeopardize the continuity of education within the next two years, we will place the institution under modified financial regulation. The governing body or institution must then prepare an improvement plan that will lead to the continued provision of good education and conscientious financial management within two years. An institution may pursue these activities on its own or in cooperation with third parties (through merger or transfer). If bankruptcy becomes inevitable, the Inspectorate will ensure that pupils, participants or students are enabled to continue their education elsewhere.
A governing body is required to adhere to its improvement plan. If it fails to do so, we will report on its shortcomings in public reports. Under certain circumstances, the Minister of Education may intervene by issuing a directive.
We publish a monthly list of boards that have been placed under modified financial regulation on our Dutch website.This list is only available in Dutch.