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
A big improvement for most of us today.
The Chancellor has hailed Lloyds Banking Group's quadrupled profits as a "milestone". So do the bosses deserve millions for a job well done?
Ed Miliband has just announced Labour's 'plans for young people', while David Cameron has pledged to protect pensioners.