An award-winning Westminster headteacher has been reinstated after an eight-month suspension following allegations of financial irregularities.

Headteacher Jo Shuter has been issued a “formal final written warning” by Quintin Kynaston Community Academy, in Marlborough Hill, St John’s Wood, but will be allowed to continue in her role following a lengthy investigation from the school’s governors.

In September, police were alerted about financial irregularities at the secondary school and launched a fraud investigation the following month.

Ms Shuter, who was named headteacher of the year at the 2007 Teaching Awards, was suspended pending investigations.

Chris Sale, deputy headteacher, was appointed acting head in her absence.

But yesterday a statement from the Quintin Kynaston governors was released on the school’s website announcing that Ms Shuter had been reinstated as headteacher.

It read: “Jo Shuter has been reinstated as headteacher of QK Academy following a long and robust governors’ disciplinary process which resulted in her receiving a formal final written warning.

“The governors are putting in place a series of supervision, monitoring and training measures to ensure that the conduct which led to the disciplinary process, does not recur.

“Governors would like to thank staff for their continued professionalism in working together to maintain the smooth operation of the school during this difficult period and reassure them that special consideration is being given to the care of all QK staff and students in the development of our new management arrangements.

“It is very frustrating that during this kind of process that staff, parents, students, and governors alike, cannot be kept more fully informed but a fuller statement will be released at the earliest opportunity.”