logo-education
0370 270 6000

already registered?

Please sign in with your existing account details.

need to register?

Register to access exclusive content, sign up to receive our updates and personalise your experience on brownejacobson.com.

Privacy statement - Terms and conditions

new financial rules for church Academy Trusts come into force

2 April 2019

For some time the Academies Financial Handbook has restricted Academy Trusts in how much they could pay for goods or services purchased from a 'related party' i.e. a person or organisation closely linked to the Academy Trust. An Academy Trust is only able to pay 'at-cost' for these goods or services with no element of profit being allowed.

From 1 April 2019 Academy Trusts are now required to go one step further and apply to the ESFA for prior approval before entering into any new significant related party transaction including those with the relevant diocese. As dioceses provide (and charge for) a variety of services to Academy Trusts there was concern that the new rules would be problematic for church Academy Trusts.

However the ESFA have issued guidance for church Academy Trusts confirming that, where the services provided by the dioceses 'can only be delivered by the diocese' then the charges levied by the diocese will automatically meet the 'at-cost' test and prior ESFA consent isn’t required. Arguably services which the diocese provides but which are not essential would fall foul of the new rule requiring prior ESFA consent to be obtained.

Church Academy Trusts who are in doubt as to whether they need to apply for ESFA prior consent should seek advice.

related opinions

Levelling Up – What now for education policy?

Following the Conservatives’ election victory in December the new government will be able to implement their election manifesto in full.

View blog

Multi Skilled Visit: what is the impact of it being a right under the new Electronic Communications Code?

A Multi Skilled Visit (MSV) is when a survey is carried out on behalf of operators for the purpose of seeing whether a new site is suitable for the installation and operation of electronic communications equipment.

View blog

High Court issues injunction to LGBT teaching protestors

The High Court yesterday handed down its judgement in relation to an application for an injunction by Birmingham City Council, preventing protests in the vicinity outside of the Anderton Park School.

View blog

General election 2019 - implications for schools

Parliament has announced that a general election will take place in the UK on Thursday 12 December 2019. Schools are popular places for polling stations and whilst some larger schools are able to continue to operate on election day, many smaller schools are forced to close.

View blog

mailing list sign up



Select which mailings you would like to receive from us.

Sign up