National Audit Office head Amyas Morse said:
The Department has ambitious objectives to provide school places, and to enable parents to have some choice of school for their children.
However, despite increases in places and funding over the last two years, it faces a real challenge, with 256,000 places still required by 2014/15. Furthermore, there are indications of strain on school places.
The Department needs a better understanding of costs to improve value for money, as well as a better understanding of the impact its funding contribution is having on the ground.
More top news
Dan Rivers explores the island community made up of descendants from Bounty mutineers, with a story worthy of a Hollywood sequel.
The US president raised laughs as he read out a series of insults about himself - but it ended with a tweet from Trump himself.
Experts have warned pregnant woman to avoid non-essential travel there.