As the education landscape continually shifts, it’s paramount for school leaders and trustees to set sail with a firm grasp of the changes in the 2023 Academy Trust Handbook (ATH). Let’s dive into the key updates and their implications for financial oversight and related party transactions
CREDIT: This is an edited version of an article that originally appeared on ISBL
Some of the key changes introduced from 1 September 2023 were around financial oversight and related party transactions as follows:
- Trusts now have more discretion regarding the distribution and consideration of monthly management accounts, giving them some greater flexibility in their financial management and oversight.
- The threshold for obtaining approval from the ESFA of related party transactions has been increased to £40,000 (from £20,000), which allows trusts extra leeway in managing related party transactions.
- With related party transactions, there are also now exemptions from pre-approvals and the “at cost” requirements for transactions with colleges, universities and schools that are sponsors, as well as other state funded schools and academies (but not their trading subsidiaries) as well as exemptions from pre-approval for purchases by a trust with a religious designation of services for ‘essential functions fundamental to their religious character and ethos that can only be provided by their religious authority’.
The amendments effective from 1 September 2023 enhance financial flexibility for trusts by granting greater discretion in managing accounts. Trustees and school leaders, armed with this knowledge, can navigate the financial landscape with confidence.
