The Key Changes in the Academy Trust Handbook 2024

In this blog, our academy specialists take a look at some of the key changes within the document, which comes into effect from 1 September 2024 which all trusts need to be aware of.

CHANGES TO FINANCE LEASES - From 1 September 2024 trusts will be allowed to enter into finance leases without prior approval from the Education and Skills Funding Agency (ESFA), provided they appear in the asset categories on the DfE’s approved list. This new freedom will give trusts the authority to manage their assets more effectively providing them with greater flexibility to manage their spending decisions locally. As a reminder there are two types of leases; operating leases (not borrowing) and finance leases (a form of borrowing).

INTERNAL SCRUTINY TO BE MANDATED - Trusts with annual revenue income over £50 million will be expected to deliver internal scrutiny using an in-house internal auditor or bought-in internal audit service from 1 September 2025.

QUALIFICATIONS FOR INTERNAL SCRUTINY – The new guidance also clarifies the qualifications and experience required for those performing internal scrutiny. Trustees and peer reviewers performing the work should also have appropriate qualifications and/or experience relevant to the specific area being reviewed.

ELECTRIC VEHICLE SALARY SACRIFICE SCHEMES - Trusts must now approach the ESFA to seek approval for new electric vehicle salary sacrifice schemes, or before accepting further employees onto existing schemes.

CLEAR PLAN FOR RESERVES - The new handbook emphasises that a trust must include a clear plan for managing and holding its reserves. This plan must be explained in the annual report. This is to help the board of trustees closely monitor the Trust’s financial plans to ensure the Trust remains a going concern.

CYBER SECURITY - Trusts must be aware of the increasing risks of cybercrime, put in place controls and take appropriate action to meet DFE's cyber security standards, meeting digital and technology standards in schools and colleges and cyber security standards for schools and colleges, which were developed to help them improve their resilience against cyber-attacks. - Guidance - GOV.UK

ESTATE MANAGEMENT - The handbook expands the list of situations where a Notice to Improve (NTI) may be issued to include the management of the school estate, underscoring the importance of effective estate management. Estates management seems to be an increasingly important topic with the DfE.

These updates in the Academy Trust Handbook aim to enhance transparency, financial management, and governance within academy trusts. Trusts should ensure they understand and comply with these changes to maintain their funding and continue providing the best possible educational outcomes for their students.

For any further guidance or support, please contact Forrester Boyd’s academy specialists.