The New Academy Trust Handbook
The Academy Trust Handbook 2023 (also known as the Academies Financial Handbook) has been published and comes into effect on 1 September 2023. What are the changes?
"Sharpened and Shortened"
The Education and Skills Funding Agency claim they have "sharpened and shortened" the handbook and trusts should ensure that they are aware of and apply the supplementary guidance signposted throughout the guidance.
Roles and Responsibilities
There is updated content on governance matters in part 1 which reflect the publication of the trust quality descriptions. A 2022 white paper proposed a formal definition based on five “pillars”, which ministers said would help determine their “potential for growth”. They are:
- High-quality and inclusive leadership;
- School improvement;
- Workforce;
- Finance and operations; and
- Governance and leadership.
There is greater emphasis on the importance of good estates safety and management. The DfE expects academy trusts to manage their school estate strategically and effectively and maintain their estate in a safe working condition. This includes complying with statutory duties to ensure the health and safety of building occupants.
School boards should have sufficient financial knowledge to hold the executive to account. The board should identify the skills and experience it needs, including sufficient financial knowledge to hold the executive to account. The board should also address this for committees/local committees/local governing bodies.
The updated guidance also explains why the roles of the Accounting Officer and the Chief Financial Officer should not be occupied by the same individual.
Main Financial Requirements
The updated guidance confirms that trusts no longer need to provide an explanation in their governance statement where the board has not met at least six times in the year.
Trusts now have an additional month to submit their Budget Forecast Return.
The preparation and circulation of management accounts has been simplified, including more discretion for trusts.
The permissive position on Electric Vehicle (EV) salary sacrifice schemes is explained. Electric Vehicle (EV) salary sacrifice schemes do not need ESFA approval where no liability falls on the trust if an employee does not fulfil their contractual obligations with the scheme provider.
Delegated Authorities
The position on GAG (General Annual Grant) pooling has been simplified to strengthen the value and importance of this practice for trusts to consider. The approval threshold for related party transactions has been simplified, as well as the arrangements for transactions within other educational providers
The Regulator and Intervention
The DfE have amended the section on Notices to Improve (NtIs) to make clearer the range of circumstances in which an NtI might be issued.
The department will engage with the sector in developing its approach to intervention, including the process to be followed by the department’s Regions Group and the evidence that they will rely on to determine the strength of trustees’ oversight of educational performance
The Schedule of Musts
The DfE has also published a Schedule of Musts for 2023. These are the requirements in the Academy Trust Handbook brought together into one list: the ‘musts’.
It abbreviates these requirements and so cannot be used as a substitute for the full handbook. References to the relevant sections are included, which must be read in full.
This tool is an entirely optional resource, and there is no requirement to submit it to ESFA.