Academy Governance And Compliance Is Conversion Beneficial?
Conversion to academy status can be very beneficial for schools. There are a variety of specialists who have experience working with academies and can work closely with you on all of the financial implications of operating as an academy.
Academy Governance And Compliance 4 FAQ’s
Listed below are four of the most commonly asked questions by heads and governors considering whether their school should become an academy.
- How much influence does the local authority have? The local authority has no power to intervene in the process. However, the school can still buy services – eg. energy, banking and insurance – from the local authority once it becomes an academy but will be under no obligation to do so.
- What accounts will the academy have to produce? An academy will be required to produce accounts that comply with the Companies Act and comply with charity and company law. The accounts will normally be for an accounting period ending August 31st. The Academies Financial Handbook contains a sample set of accounts.
- What is the position regarding surpluses and deficits? Any surplus or deficit has to be agreed before the school becomes an academy. Academies are not allowed to run a deficit. Any academy that opens with a transferred deficit will need to have a plan agreed with the Young People’s Learning Agency (YPLA) to repay the deficit from its annual grant. If an academy does develop a deficit after it has opened it will be required to agree a restructuring plan with the YPLA.
- Can the academy return to local authority control? No. Once a school has become an academy, it is not possible to go back to maintained / voluntary status.
The above information is for a guide only and is not a substitute for the professional advice a school should take before registering their interest with the Department for Education.
There are many other questions to ask and a professional will be able to advise accordingly. Further information on academy governance and compliance can be found on this click here. If you are looking for traditional business development support as opposed to academy governance and compliance click here