A head teacher has been arrested and bailed in connection with suspected fraud at a free school in Bradford.
A 41-year-old man, understood to be Sajid Raza, was arrested as part of an investigation into the city's Kings Science Academy.
It comes after the Department for Education (DfE) last year said it had found "serious failings" with the school's financial management.
The academy, one of England's first free schools, opened in September 2011.
The school was praised by Prime Minister David Cameron when he visited it in March 2012.
The DfE investigated the school after a whistleblower made allegations about its governance, and found nearly £80,000 of public money had not been used for "its intended purpose".
A DfE spokeswoman said it acted "as soon as it received allegations of wrongdoing" and referred the case to the police.
She said: "All free schools are held to rigorous account.
"The vast majority are performing well with three-quarters rated good or outstanding, but where there is failure we will not hesitate to intervene."