The Public Accounts Committee said the Department for Education (DfE) needs to improve its understanding of poor financial management in schools, so it can decide when and how to intervene.
In a report on the matter, the committee said it is “alarmed" by "worrying expenditure by some schools”.
Such expenditure included “very high salaries” being paid to senior staff in academies, and “excessive” expense payments for governors.
The committee said the situation could be symptomatic of inadequate controls on how money is spent across the whole schools system.
Labour MP Margaret Hodge, who chairs the committee, called on the DfE to improve accountability on its spending, given that education and children's services are becoming increasingly devolved.
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