Police have admitted that “human error” meant allegations of fraud at a Bradford school were not investigated for months.
Claims of false accounting at Kings Science Academy in Lidget Green and thousands of pounds of government funding being misused or unaccounted for, were first revealed in a government report in April last year.
At the time the Action Fraud decided that “no further action” was required.
But soon after the document was leaked in October, police in West Yorkshire began an investigation.
The Principal, Sajid Raza, was arrested and released on bail, which he is due to answer later this summer.
Police have now said that Action Fraud incorrectly record the case.
In June last year the National Fraud Intelligence Bureau (NFIB) realised a mistake had been made and decided the school should face a police investigation but it failed to pass this information on to West Yorkshire Police.
It meant the school was only investigated after the report was leaked to the press.
A statement from NFIB said: “It is accepted that Action Fraud incorrectly recorded the Kings Science Academy report as an information report rather than as a crime.
“This was due to a human error on the part of one person. The NFIB audit and review process did assess this report and identify the mistaken classification and amend the report to a crime report, but only for a crime recording and audit return perspective.”