Academy trusts in England will be reminded of the importance of
having sound financial checks and balances as the Government sets
out strengthened material on their use of public money.
To ensure trusts running schools are aware of their financial
responsibilities, Schools Minister has today (Thursday 27
June) issued an updated
handbook to help bolster the financial management and
governance of academy schools.
The key change to the handbook is a new requirement that academy
trusts must show how they have checked that their internal
systems are effective and compliant through an
independently-prepared annual report submitted to the Education
and Skills Funding Agency (ESFA).
The handbook also includes boosted material on:
- The role governing bodies should play to make sure the pay
and other benefits of senior staff are reasonable and reflect
their responsibilities;
- The need for trusts to maintain a risk register to ensure
procedures and systems are adequately scrutinised;
- The importance of having an agreed whistleblowing procedure
and a structure that protects and supports staff so they can
report concerns in confidence;
- The role of trustees, emphasising the importance of robust
governance; and
- The Secretary of State’s powers to act to tackle rare cases
of mismanagement – including removing trustees from a trust.
Academies Minister said:
Academies are raising standards in our schools by placing
freedom in the hands of school leaders. In the majority of
cases, standards have risen more quickly in sponsored academies
than similar council-run schools.
But we must build on that, and it is important that we hold
academy trusts to account to ensure that all academies offers
the best education possible and spends public money reasonably.
To do that, trusts must have strong financial management and
governance structures – and this handbook will help trusts to
deliver it.
The Academies Financial Handbook is updated annually by the ESFA
to support academy leaders, trustees, accounting officers and
auditors by describing the requirements to run effective,
compliant and successful trusts.
With more than 50% of children in state-funded schools in England
now being taught in an academy or free school, today’s
publication builds on the Government’s work to further improve
financial management and accountability across the sector and
clampdown on trusts not adhering to the requirements set out in
the Academies Financial Handbook.
It also follows writing to 213 academy
trusts in the last 18 months – calling on them to justify
excessive salaries – and the publication of new guidance for
school governors and trustees to help them challenge and support
school leaders.
