Academy Trust Handbook 2022

Initially focussed on financial matters, the handbook has been significantly broadened over time and now encompasses a wide range of governance and operational matters.

It is standard practice for ESFA to issue an updated version of the handbook each summer with changes becoming effective on 1 September. This year is no different, but given the hiatus in Government as a result of the Conservative Party leadership contest, it will be no surprise that the changes in this year’s edition are minimal and far fewer than has been the case in recent years.

So what has changed?

• Paragraph 2.15 – The requirement for a budget forecast return outturn has been removed. Academy trusts are still required to submit a budget forecast return each July.
• Paragraph 5.13 – Clarifying that the need for ESFA prior approval only applies to ‘special’ (non-statutory/non-contractual) severance payments.
• Paragraph 5.19 – Clarifying that the giving of an indemnity by an academy trust even where it is beyond the limits set out in paragraph 5.20 does not require prior ESFA consent if the indemnity is given in the normal course of business. There may, of course, remain some questions as to how widely ‘normal course of business’ can be interpreted.
• Paragraph 5.57 – This is relevant for academy trusts which have academies with a religious designation. Services to protect and develop the religious character and ethos of such academies which can only be provided by their ‘religious authority’ are regarded as meeting the ‘at cost’ requirement. The reference to ‘religious authority’ replaces the reference to ‘diocese’ and the notes in the new edition suggest this extends the scope of this paragraph. Since the term ‘religious authority’ is not defined (and could be interpreted narrowly to mean the relevant Diocesan Board of Education) it is difficult to know what is intended here. However, such services are likely to be provided by the Diocese and so the change may be of little significance in practice. For academy trusts who wish to purchase relevant services from outside of the Diocese, this may give the opportunity to do so although the lack of clarity as regards what is meant by ‘religious authority’ means that academy trusts cannot do so with any great confidence.

If you have any questions about these changes or if we can assist in other ways please contact Phil Watts or Esther Campsall.

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