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The Education and Skills Funding Agency (“ESFA”) has released the Academy Trust Handbook that will apply to academy trust accounts from the 1 September 2022. | |
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What has changed in the 2022 edition? | |
Whilst the handbook has noted changes to be implemented, these are limited in number and what could be considered as minor points. Further to this, it is reminded that all academies should be reviewing the handbook on a regular basis to ensure they are complying with the ‘must’ requirements.
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The ESFA has confirmed that they are only requiring a budget forecast return (BFR) to be submitted annually in July. This consolidates the budget forecast return outturn (BFRO) and budget forecast return three year (BFR3Y) that were previously completely.
However, this does not differ from what has been submitted in the 21/22 financial year and academies should be familiar with the new requirements. | |
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The ESFA has clarified that academy trusts must obtain prior approval before making special severance payments where: - An exit package which includes ‘special’ severance is at, or above £100,000
- An employee earns over £150,000
Special severance payments are considered those that are neither statutory nor contractual. | | | |
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The ESFA has confirmed that trusts will be able to enter into indemnities which are in the normal course of business without seeking approval.
Academies will still be required to obtain prior ESFA approval for the following transactions which are above the delegated limits: - Writing-off debts and losses
- Entering into guarantees or letters of comfort
- Entering into indemnities which are not in the normal course of business
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The final change noted in the handbook for the current year affects academies with religious designation. Provision of services to protect and develop their religious character and ethos can now be provided by all religious authorities and not just dioceses, are regarded as meeting the ‘at cost’ requirement. | |
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Reminder for Academy Trusts – Key deadlines | |
- Academies must submit audited accounts and associated documents to the ESFA by 31 December 2022 and must publish the audited accounts on the trust’s website by 31 January 2023
- Filing deadline for placing the accounts at Companies House remains 31 May 2023
- Academy accounts return to be filed by 19 January 2023
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If you would like to arrange a virtual meeting to discuss your specific circumstances in relation to any of the above, please get in touch with your usual contact within James Cowper Kreston or contact me using the details below.
Darren O'Connor Partner
Tel: 07990 525362 | E: doconnor@jamescowper.co.uk | |
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The information in this newsletter must not be relied on as giving sufficient advice in any specific case. | | | |
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