How has the Academy Trust Handbook been updated for 2023?

Effective from 1 September 2023, the updated Academy Trust Handbook has been sharpened and shortened. Trusts need to be aware of and apply the supplementary guidance signposted throughout the handbook. We have outlined the main changes to the handbook, as well as key highlights.

Trust governance

The requirements on Trust Governance matters have been updated to ensure they reflect the trust quality descriptors. These have been re-published with guidance from the Department of Education on commissioning high-quality trusts.

Additionally, stronger wording has been used on the skills and experience of the board indicating that its committees and local governing bodies should have sufficient financial knowledge to hold the executive to account. If you haven’t done so already, be sure to share these changes with your Trust Board as an agenda item for your next meeting.

The handbook outlines that the Accounting Officer and Chief Financial Officer roles should not be occupied by the same person - if this is currently the case at your trust you will need to address it as soon as possible.

Finally, more detail has been provided on estates safety management to help and support trusts to comply with their statutory duties. This follows on from the National Audit Office report on the Condition of School Buildings issued in June 2023, highlighting significant underinvestment in the school estate.

Our EPM Governance Specialists are here to support your Trust’s needs and can provide further information and guidance on the changes outlined in the updated Handbook.

Financial reporting

Trusts no longer need to provide an explanation in their Governance Statement if the board has not met at least six times in the year, but they must still meet at least three times a year.

There is still a requirement to share the management accounts with the chair of trustees each month, however the requirement to share these with the other trustees six times a year has been removed. The board must consider the management accounts when it meets.

The Budget Forecast Return deadline will be the end of August in line with this year's extended deadline, giving trust’s more time to consider their budgets.

Financial management

The wording on General Annual Grant (GAG) pooling has been strengthened, setting out the importance of this practice for trusts to consider and how this can be integral to a trust’s successful financial operating model.

There will be an increase in the threshold for Education and Skills Funding Agency (ESFA) prior approval of related party transactions from £20k to £40k. There will be a removal of this requirement with some schools, colleges and universities, and some faith bodies.

There has been confirmation within the Handbook that trusts can set up Electric Vehicle salary sacrifice schemes without the need of ESFA approval. No liability falls on the trust if an employee does not fulfil their contractual obligations with the scheme provider.

Finally, some examples have been included in the Handbook of circumstances when a Notice to Improve might be issued have been included for clarity.

If you’re looking for support or advice to ensure you remain compliant with the Handbook, or would like to learn more about our Finance service, along with relevant training, please talk to us.