Changes to the Academy Trust Handbook
The Updated Academy Trust Handbook 2022 comes into effect on 1 September 2022
The Academy Trust Handbook (also known as the Academies Financial Handbook) describes the governance and financial responsibilities of academy trusts reflecting their status as charitable companies acting in the public interest. It is intended for academy members, trustees, accounting officers, chief financial officers and auditors. The Handbook has been updated for 2022, reflecting changes and amendments which have occurred over the last 12 months.
Financial Reporting
2.15 The academy trust must submit to ESFA, in a form specified by ESFA, an Academies budget forecast return (BFR) each July in accordance with deadlines published annually.
Special Payments
5.12 Additionally, in accordance with HM Treasury’s Guidance on Public Sector Exit Payments, academy trusts must obtain prior ESFA approval before making a special staff severance payment where: • an exit package which includes a special severance payment is at, or above, £100,000; and/or • the employee earns over £150,000.
Indemnities
5.19 The academy trust must obtain ESFA’s prior approval for the following transactions beyond the delegated limits described below:
• Writing-off debts and losses;
• Entering into guarantees or letters of comfort; and
• Entering into indemnities which are not in the normal course of business.
Religious Character
5.57 For academies with a religious designation, the provision of services to protect and develop their religious character and ethos, which can only be provided by their religious authority, are regarded as meeting the “at cost” requirement.
What Has Changed?
Financial Reporting: Confirming withdrawal of the Budget Forecast Return Outturn;
Special Payments: Clarifying in paragraph 5.12 that prior approval of staff severance payments in accordance with HM Treasury’s Guidance on Public Sector Exit Payments applies only to ‘special’ (non-statutory/non-contractual) payments;
Indemnities: Confirming that trusts will be able to enter into indemnities which are in the normal course of business without seeking approval; and
Religious Character: Extending the scope of paragraph 5.57 from dioceses to all religious authorities, confirming when the ‘at cost’ requirement is met.
Handsam Resources
FE21 Academy Trust Handbook (Formerly Academies Financial Handbook)
GOV26 The Responsibilities of Academy Boards
DfE: Academy Trust Intervention Powers Schools Bill Factsheet