The Academy Trust Handbook 2024 (ATH 2024) has recently been published and is now available. The ATH 2024 applies with effect from 1 September 2024.
The main changes are:
Finance Leases
While a trust has always been able to enter into operating leases, from 1 September 2024 trusts will also be able to take out finance leases, without approaching the Education and Skills Funding Agency (ESFA) for prior approval, where the asset type appears on the Department for Education’s (DfE’s) approved list. It’s good to see that energy efficient lighting is now on the approved list.
Trusts must continue to obtain ESFA prior approval for any asset not on the DfE approved list.
Electric vehicles
More clarification has been added around salary sacrifice schemes for electric vehicles. Trusts must contact ESFA early in the planning process in relation to any new schemes or before accepting further employees into existing schemes. This should be done through the customer help portal.
Internal scrutiny
Trusts with an annual revenue income over £50million should (and from 1 September 2025 must) have a professional internal audit function to deliver internal scrutiny. These trusts can use any combination of an in-house internal auditor and a bought-in internal audit service. They may also use other individuals or organisations where specialist non-financial knowledge is required. The other options of using a trustee or CFO of another trust remain for smaller trusts, although from our experience, few trusts have used them in recent years. More clarity has also been added around qualifications and experience of those carrying out internal scrutiny work.
Reserves
It has always been a requirement for trusts to have a policy on holding reserves but a trust’s reserves policy must include a “clear plan for managing reserves” and this should be disclosed in the annual report.
Digital and technology standards
A reminder has been included that it is the responsibility of the trust to refer to the DfE’s digital and technology standards, which were developed to support trusts in making more informed decisions about technology.
Cyber security standards
Trusts must be aware of the risk of cybercrime, have proportionate controls and take appropriate action where a cyber security incident has occurred. Trusts should take appropriate action to meet DfE’s cyber security standards, which were developed to help trusts improve resilience against cyber attacks.
Management of school estate
The list of examples where a Notice to Improve may be issued by the DfE or ESFA (on governance grounds) has been expanded to include trustees and executives failing to manage their school estate and maintain it in a safe working condition strategically and effectively.
If you would like further guidance on these points or any other aspects of the ATH 2024, please get in touch with one of your usual academy contacts at BHP for a discussion.
