The Department for Education (DfE) has recently published the Academy Trust Handbook 2024 (ATH), which is applicable to all academy trusts with effect from 1 September 2024.
Compliance with the ATH is a condition of all academy trust funding agreements, and so remains one of the most important documents that trust boards and those on the senior leadership and management teams need to fully understand and refer to when decisions are to be made.
This year’s ATH introduces some key updates surrounding both management of the academy trust and governance. Melanie Bailey, Head of Academy Services has summarised these key changes below.
Updates for 2024/25
1. Digital and technology standards (section 1.16) and cyber security (section 6.14):
A new “should” has been added to the handbook this year, stating that trusts should refer to the DfE’s digital and technology standards, particularly around cyber security standards. The digital and technology standards have been developed by the DfE to help academy trusts make informed decisions about technology in use in their trust.
The ATH requires that trusts should take appropriate action to meet DfE’s cyber security standards, which were developed to help trusts improve their resilience against cyber-attacks.
If these standards have not been shared with trustees, it is recommended they are shared and adhered to moving forward.
2. Electric vehicle salary sacrifice schemes (section 2.31):
All academy trusts must approach the ESFA to seek approval for new EV schemes and to seek approval to be able to accept further employees onto existing schemes already in operation by the academy trust.
3.Reserves policy (section 2.8):
Whilst it is not a new requirement to have a reserves policy in place, the ATH has increased its requirements on the content of what should be included in the reserves policy. The board of trustees must set a policy for holding reserves, and explain it in its annual report, including a clear plan for managing reserves.
It is recommended that your academy trust’s reserves policy is reviewed at the next trust board meeting, with any required amendments being approved and the new policy reflected in the trustees report.
4.Internal scrutiny (section 3.16):
There are new requirements regarding internal scrutiny options for trusts with annual revenue income over £50 million. From 1 September 2024, if an academy trust’s revenue income exceeds £50 million, they should use either an in-house internal auditor or a bought-in internal audit service. The use of a non-employed trustee or an independent peer review by a CFO of another trust is no longer considered appropriate.
From 1 September 2025, this requirement is set to change to a “must”. As such, we recommend that your trust board and audit committee review your current internal scrutiny provision and seek to make necessary arrangements in order to comply with the requirements of the ATH moving forward.
5.Qualifications for internal scrutiny (section 3.17):
A new section has been added to the ATH which specifies that those completing internal scrutiny should have relevant professional qualifications or experience. Trustees and peer reviewers performing the work should have appropriate qualifications and/or experience relevant to the area being reviewed.
It is recommended that evidence of consideration of the relevant qualifications and/or experience is noted in your audit committee (or relevant committee) minutes to ensure compliance with the ATH requirements.
6.Finance leases (section 5.25 & 5.26):
Academy trusts will now be able to enter into finance leases without prior approval from The Education and Skills Funding Agency (ESFA) for specific asset categories included on the DfE-approved list.
7.Notice to Improve (NtI) (section 6.16):
The list of examples where a NtI may be issued has been extended and now includes “trustees and the executive failing to manage their school estate and maintain it in a safe working condition strategically and effectively.”
The “Schedule of Musts” has now been taken out of the ATH and placed into its own separate document. The DfE have converted this into a useful excel tool which allows academy trusts to review whether they are compliant with the ATH “musts” or whether they are working towards or not compliant. This can be found here.
We hope you have found our summary of changes useful, but please don’t hesitate to contact us if you have any questions.
