AUDIT
Keeping our academy clients informed We act for 25 academies, forming a significant percentage of the open academies within Gloucestershire, Worcestershire and the South West.
Ryan Moore (L) Client Director Nathan Smith (R) Audit Manager
With experience in managing an increasing range of academies, from small rural primary to large senior schools, and multi-academy trusts, we have experience helping to resolve the wide range of issues that arise. We have designed an innovative and hands on audit approach which is supported by our year round contact programme. As part of this approach, clarification on important sector updates is regularly provided. With the recent release of the new The Academy Trust Handbook 2021 (formerly known as the Academies Financial Handbook), we summarised the key changes which take effect from 1st September 2021 and sent a PDF summary to our academies. Baroness Berridge wrote to all academy trusts confirming her assurances that the academy trust regulatory framework is as effective as possible in driving trust quality 14
– Summer 2021
Academy Trust Handbook Effective 1st September 2021 Changes
Baroness Berridge Parliamentary Under Secretary Foreword
of State for the School System
Change from Academies Financial Handbook to Academy Trust Handbook in order to provide: • existing Trust’s responsibilities • close to ‘one stop shop’ for Trustees, local Governors & Trust leaders • pointers to the key legislation and guidance on safeguarding, health & safety and estates management To parallel the above change, the ‘Financial Notice to Improve, will be changed to ‘Notice to Improve’ Should haves: Roles & Responsibilities: • Reserve places within governance structure for parents, carers or others with parental responsibilities (2 places for single academies, 2 places on full board for multi-academy trusts and 2 places on local governing bodies for multi-academy trusts) • The benefit of having an external review of governance, as a stronger means of identifying potential improvements Financial & Delegated Authorities: • Review the scheme of delegation annually, and immediately when there has been a change in Trust management or organisational structure • Should retender for external audit every 5 years Internal Scrutiny • Chair of Trustees should not be Chair of Finance Committee or Audit & Risk Committee
and capacity. The Baroness continued to explain that the change in title was to accurately reflect the full range of important content it contains. The document itself is over 70 pages so this summary is a useful overview for those who have responsibility for governing, managing and auditing academy trusts, including these new areas: � trusts’ existing obligations in relation to
safeguarding, health and safety, and estates management
Must haves: Roles & Responsibilities: • Ensure members are not currently subject to a direction made under section 128 ‘prohibition on participation in management’ of the Education and Skills Act 2008 • From 1 March 2022 any newly appointed CEO can only become Trustee if members appoint, CEO agrees and the articles permit • Appoint a governance professional (previously Clerk to Governors) who is not a Trustee, Principal or CEO Financial & Delegated Authorities: • Publish on website the number of employees whose benefits (salary, employers pension, other taxable benefits and termination payments) exceed £100k, in £10k bandings • Make available for public inspection; agenda, minutes and supporting documents for all meetings, except for reference to named employees and pupils and any confidential information • Prior approval for staff severance payments of £100k or more which include nonstatutory or non-contractual elements Internal Scrutiny • Must not be completed by member of senior leadership team Regulator & Intervention • Provide ESFA with written authority giving permission for any third party to provide information and documentation to the ESFA or its agents upon request
Cybercrime • Be aware of the risk of cybercrime, put in place proportionate controls • Obtain ESFA permission prior to making any ransom payments
� cybercrime � external reviews of governance
The PDF can be downloaded at our website: https://www.randall-payne. co.uk/services/audit/academies-andeducation/
Contact Nathan Smith for more information by emailing nathan.smith@randall-payne.co.uk or call 01242 776000.
