Despite the new UK Government’s headline policy affecting private school fees, the state school & academy sector is not expecting considerable changes in the short term. But the Academy Trust Handbook (ATH) continues to be reissued annually, so here’s our summary of the changes in the 2024 edition.
These changes come into effect on 1 September 2024 i.e. the start of the next financial year for academy trusts.
Roles and responsibilities
Trusts are reminded of the importance of meeting the Department for Education’s (DfE’s) IT service and digital equipment standards. The Government have summarised these standards here.
Main financial requirements
The ATH emphasises that a trust’s reserves policy must include a clear plan for managing reserves, specifically stating that the trustees must:
- ensure that financial plans are prepared and monitored, satisfying themselves that the trust remains both a going concern and is financially sustainable
- take a longer-term view of the trust’s financial plans, consistent with the obligation to submit three-year budget forecasts to the Education and Skills Funding Agency (ESFA)
- implement a suitable policy for holding reserves and explain this policy in the trust’s annual report, including a clear plan for managing reserves
Academy trusts must seek prior ESFA approval in the planning stage of the proposed implementation of any electric vehicle (EV) salary sacrifice scheme and accepting any new employees onto an existing EV scheme.
Internal scrutiny
There are various options available to trusts to enable them to deliver a programme of internal scrutiny. As per previous years, these include any combination of:
- an in-house internal auditor
- a bought-in internal audit service
- the appointment of a non-employed trustee
- an independent peer review by the chief financial officer from another academy trust
From 1 September 2025, trusts with annual income over £50m must use either an in-house internal auditor or a bought-in internal audit service.
For smaller trusts, the scope for using less formal options will remain for now, but the trustees must ensure that:
- auditors are members of a relevant professional body
- trustees and peer reviewers performing the work have appropriate qualifications and/or experience relevant to the area being reviewed
Delegated authorities
There have been changes to the accounting treatment regarding the recognition of leases which were implemented in the private sector over the past couple of years. As these impacted DfE rules on the usage of finance leases, this has been delayed in the sector.
The ATH clarifies that trusts can enter into pre DfE-approved finance leases. Government guidance on these leasing agreements is available here.
The Regulator and intervention
Clarifying that trusts must take appropriate action to meet the DfE’s cybersecurity standards.
The reach of a Notice to Improve letter has been extended to encompass the trustees’ responsibilities for management of the school’s estate.
Key tools to keep you compliant
Use this ESFA webpage to access the full Academy Trust Handbook 2024 and a spreadsheet listing all the requirements (‘musts’) from the ATH.
How BKL can help
Our specialist education sector team have more than 25 years’ experience of providing advice to over 100 schools and academies, including single academy trusts (SATs) and multi academy trusts (MATs) across the UK. We can help your trust to understand and meet the ATH requirements.
Join our webinar on Tuesday 17 September, when we’ll be guiding you through the ATH updates and changes and answer your questions.
Book your place here
We’ll send the webinar recording to everyone who registers. You can also for advice from our experts. You can also send us a message for advice from our experts.