We advise Headteachers and Governors on the terms of the Funding Agreement and what to do to finalise it.
What is the Funding Agreement?
The academies Funding Agreement is a core document which establishes the new academy, the relationship between the Secretary of State and the Academy Trust and the parameters within which the academy must operate.
The Funding Agreement sets out the date on which the new academy will open. From that date a maintained school will no longer be maintained by the Local Authority.
The Funding Agreement is made between the Secretary of State and the Academy Trust. The DfE has produced a model Funding Agreement for the academy to tailor to its needs. That said, the DfE does not expect major changes to be made to the Funding Agreement.
What does the Funding Agreement cover?
Some of the key points which the Funding Agreement covers are highlighted below. It does cover other matters. Please contact Victoria Judge if you would like more detailed advice or information on the Funding Agreement.
Naturally, the academies Funding Agreement deals with the Funding of the academy. However, it also contains conditions and requirements in relation to the academy. For example:
- the school must be at the heart of the community
- assessment of pupils’ performance must take place as they apply to maintained schools
- admissions policies and procedures must be in accordance with admissions law and codes of practice
- pay and conditions are the responsibility of the Academy Trust acting in accordance with guidance issued by the Secretary of State
- there must be an emphasis on special educational needs
- no charge may be made for admissions and the academy may only charge pupils where the law allows maintained schools to charge
- the academy must implement procedures to manage donations and use reasonable endeavours to get donations.
The Funding Agreement outlines the various grants to be made available to the Academy Trust. For example:
- the General Annual Grant in order to cover the normal running costs of the academy
- the Earmarked Annual Grant which may be applied specific projects or capital expenditure as agreed between the academy and the Secretary of State
There is also the ability for the academy to apply for a Capital Grant in relation to capital expenditure, the transfer of employees and special educational needs.
The Funding Agreement places obligations on the Academy Trust in relation to financial standards monitoring and audit.
