UPDATE from the BBC (April 4 2014): Discovery Free School shut down
This is from the DfE's investigation reports:
http://www.education.gov.uk/aboutdfe/executiveagencies/efa/efafundingfinance/b00212647/external-assurance/academiesfraud-/investigation-reports
The investigation document (published in October 2013) included theses paragraphs:
'The Trust does not monitor cash flow, does not have an approved budget for
2013-14 and has not developed an up to date long term financial plan. There is
a significant risk that the school may not be able to meet its financial obligations
and may not represent a going concern.