As the Summer Term came to an end, academy trusts and their advisers up and down the UK were awaiting the latest edition of the Academy Trust Handbook (ATH). This annual publication covers the mandatory requirements for academy trusts as well as helpful advice, guidance and links to best practices to support trusts and trustees in their governance responsibilities.
When the ATH 2025 changes apply
The ATH 2025 is effective from 1 September 2025 i.e. the start of the next financial year for academy trusts.
How ATH 2025 is consistent with previous editions
Format
The format of ATH 2025 is the same as the 2024 edition. This is despite the closure of the Education and Skills Funding Agency (ESFA) and the transfer of its activities and functions to the Department for Education (DfE).
The Schedule of Musts
The terminology within the ATH remains consistent too. ‘Must’ relates to requirements imbued on the trust whereas ‘should’ identifies good practices which should be applied unless the trust can demonstrate that an alternative approach is more appropriate.
The Schedule of Musts is included as an appendix in every ATH. It’s a vital source for all trustees, senior leaders and management of any academy trust. It’s also a key document which informs auditors of regularity compliance throughout the year.
What has changed from ATH 2024
ATH 2025 introduces no changes that would require a successfully run academy trust to change how it operates. Instead, it offers clarity to trustees in three areas:
- Roles and responsibilities
- Financial requirements
- Regulatory concerns and intervention
Roles and responsibilities
- Managing Public Money
- Updating Accounting Officer Duties, specifically their duty to raise concerns
- Updated definitions of regularity propriety, value for money and feasibility
- Providing links and tools in relation to the above
- Providing trusts with further guidance on Estate Management
- Confirming that trusts must have an understanding and be working towards meeting the 6 core digital and technology standards by 2030
- Link to guidance and support on sustainability to help trusts ensure that they have a climate plan in place
Financial requirements
- Providing trusts with further guidance and support surrounding procurement procedures and practices
- Clarification of the role and responsibility of the board in setting executive pay
Regulatory concerns
- Internal Scrutiny – clarifying that the income threshold currently in operation relates to the most recent set of audited accounts
- Confirmation that the DfE may recover funds where there is evidence of irregularity or fraud – we examine this in more detail below
- Confirmation that trusts must not pay any cyber ransomware demands
- Provision of links with further information on DfE oversight and support
Intervention powers of the DfE and the potential recovery of misappropriated funds
This clause sits as an addendum to the section of the handbook which deals with the issuing of a Notice to Improve (NtI).
The option to issue an NtI solely on educational grounds has been removed from the ATH 2025. This should only be issued for either weak financial management and or governance within the trust as listed within section 6.17 of ATH 2025.
If the trust fails to comply with the NtI, this will be considered a breach of the funding agreement between the trust and the DfE. Delegated authorities from the trust may be revoked, with all relevant transactions requiring advance approval from the DfE.
The NtI must be published on the website of the trust within 14 days of receipt and must be retained until formal notice is given by the DfE that the NtI is lifted.
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.
Contact us today for a chat or look out for details of our Academy Trust Updates our webinar on Thursday 18 September, when our senior academies and schools experts will take you through the ATH 2025 changes, explain your reporting requirements and answer your questions.