Academies Financial Handbook
Fri 01 Sep 2017
With the new academic year comes, of course, a new Academies Financial Handbook.
There are no dramatic changes to the Handbook but of particular note are the following clarifications, highlighted in bold:
- Non-statutory/non-contractual severance payments above £50k (gross, before deductions) must be approved by the ESFA.
- ESFA prior approval must now be obtained where a trust is contemplating a transaction with a connected party (or related party as it is sometimes referred to) if the arrangement is novel, contentious and/or repercussive.
Our advice is to tread carefully with both, err on the side of caution and get advice. Digging deeper in the situations involving Durand Academy Trust and Wakefield City Academies Trust both reveal underlying issues with related party transactions and the ESFA’s inherent distrust of arrangements with connected parties.
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