1. Link Academy Trust Conference

2. Session Agenda The Academy Environment
Academies Financial Handbook Overview
Local Governance Tips
Pam Tuckett, Partner
@Pam_tuckett

3. The Academy Environment

4. An academy is a business and separate legal entity
Company Environment
Limited by guarantee
Memorandum and articles of association
Companies Act 2006
Member = shareholder
Director = Trustee
Governors may not all be Directors
Company Secretary usually = clerk to Governor
An academy is a business and separate legal entity

5. Charity Environment Exempt charity
Principal regulator is Secretary of State for Education
Otherwise a charity in all respects
Directors are Trustees for Charity Law purposes
Charities Act 2016 and Trustee Act 2000
CC10 – Hallmarks of a well Run Charity
CC3 – The Essential Trustee
CC23 – Exempt charities

6. Financial Environment
Academies Financial Handbook (AFH)
Accounts Direction - Coketown Accounts
Companies Act 2006 Accounting requirements
Audit required under the funding agreement
UK Generally accepted accounting Principles (UK GAAP)
Statement of recommended practice for charities (SORP)
Tax requirements
Reporting to Companies house, EFA, HMRC, etc
Accounting Officer role
CFO role
FMGS (within 4 months)
CC8 – Internal Controls Checklist

7. Academies financial Handbook OVERVIEW

8. Academies Financial Handbook
Roles and Responsibilities
Main Financial and Governance Requirements
Delegated Authorities
Audit Requirements
Annexes
Definitions
Schedule of freedoms and delegations
Schedule of requirements (musts)
Further sources of information
Must, should, may definitions

9. Audit requirements Statutory audit Regularity audit Funding audit
Teachers’ pension audit
Internal audit
NAO, PAC and EFA
SARA (Sector Annual Report and Accounts)

10. Regularity and Propriety
Regularity: Comply with legislation, funding agreement, AFH and the Trust’s internal procedures Propriety: In line with Parliaments intentions – standards of conduct, behaviour and corporate governance

11. Novel and Contentious Novel No experience
Outside normal business activity
Contentious
Trust could be criticised by Parliament/public/press
Must get EFA approval for such payments

12. Connected Party Transactions
Pay no more than ‘cost’ for goods or services provided by:
Member or trustee (LGB chair?)
Individual or organisation connected to a member or trustee (complex rules)
Individual or organisation that has the power to appoint a member or trustee
Sponsors
Does not apply to contracts of employment
De minimus £2,500
Need an ‘at cost’ statement of assurance
Still needs to be properly procured

13. Accounting Officer Responsibilities 1.5.18
Personally responsible to Parliament and EFA Accounting Officer
Must ensure high standards of probity in the management of public funds
regularity
propriety
value for money
Must ensure
proper financial records kept
opportunities and risks are managed
Reporting lines
Academy Board of Trustees
EFA’s Accounting Officer

14. Pitfalls to watch out for
No borrowing (watch out for credit cards)
Gifts
Special payments (bonuses)
Leasing (new definitions)
Fixed asset transactions requiring approval

15. Governance Tips
LOCAL Governance tips

16. Governance Tips Top 10 Planning Checks for Governors
Kreston Benchmarking report can help

17. Financial Governance Tips
Questions to ask:
Is there a regularity or propriety issue?
Have we got value for money?
Is there a connected party issue?
Is it a novel or contentious transaction?
Have we followed our scheme of delegation and tendering procedures?
Are we complying with the Academies Financial Handbook?

18. Disclaimer
This workshop has been prepared by Bishop Fleming and must not be distributed to any third parties without our express agreement. The information in this presentation is based on our current understanding of current Legislation, Regulations Consultation and Review Documents. These may be affected by future changes. We recommend that before taking any action in respect of the content of this workshop that you seek specific advice from Bishop Fleming based on the individual circumstances.