The council is having to make changes because the DfES realised that itsoriginal decision to let the organisation operate as a limited companywas out of step with rules on how public funds should be accountedfor.
Instead, the council will now be classed as an executivenon-departmental public body, a type of quango.
But Jane Haywood, the council's chief executive, said the move would notaffect the council's independence. "This should be seen as abureaucratic, administrative change," she said. "The relationshipbetween us and the DfES will be unchanged, it's all about accounting forpublic money."
Estelle Morris, chair of the council, added: "It is disappointing thaterrors were made about the classification of the council, but we areusing it as an opportunity to review our role, structure and ways ofworking after 18 months of operation.
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