ESFA publishes updates to Academies Handbook

The Education and Skills Funding Agency has published the latest version of the 'Academies Handbook', which comes into effect on 1 September 2022.

Also known as the 'Academies financial handbook', the Iatest version of the document contains new information about financial reporting, confirming the withdrawal of the budget forecast return outturn (BFRO). Academy trusts must comply with this handbook as a condition of their funding agreement.

Other changes include :

Special payments: clarifying that prior approval of staff severance payments only applies to ‘special’ (non-statutory/non-contractual) payments;

Indemnities: confirming that trusts will be able to enter into indemnities which are in the normal course of business without seeking approval (further guidance to follow);

Religious character: extending the scope from dioceses to all religious authorities in relation to ‘at cost’

The foreward, by Baroness Berridge, Parliamentary Under Secretary of State for the School System, notes:

"First, the handbook emphasises that trusts should reserve places in their governance structure for parents, carers or other individuals with parental responsibilities – either on the main trust board or in local governing bodies. Involving parents in trust governance helps ensure that boards stay accessible and connected to the community they serve and supports robust decision making.

Secondly, the handbook highlights the benefit of commissioning an external review of your governance, as a stronger means of identifying potential improvements, rather than self-assessment alone. I encourage you to consider a review if your trust is undergoing significant change, but also to reflect on how it could support you more routinely. The handbook points you to resources that can help.

The final area to emphasise is cyber security. Many of you will be aware of the increasing number of cyber-attacks involving ransomware which are affecting the education sector and others. I know that these events can have devastating effects on organisations and individuals, and the Department continues to work with crime prevention agencies to help trusts protect themselves. The handbook highlights the National Crime Agency’s advice not to pay ransoms, and to approach us if your trust finds itself in the very difficult position of contemplating such a payment."