Academies: Finance and Leadership

High and rising standards are at the heart of this government’s mission to break down barriers to opportunity and ensure every child has the best life chances. Accountability is non-negotiable. This is why the government has committed to bring multi-academy trusts into the inspection system, to make the system fairer and more transparent, and enable direct intervention when schools and trusts are not performing to the required standards.

The primary responsibility for the financial oversight of academy trusts rests with the trustees themselves, supported by the financial management and governance requirements set by the department in academy trusts’ Funding Agreements, the Academy Trust Handbook, the Academies Accounts Direction and the department’s Financial Support and Oversight Guidance for Academy Trusts. The department expects academy trustees to deliver strong governance, monitor the financial health of their trust or school and ensure it remains a going concern.

All academy trusts must publish an annual report and accounts (their financial statements), which are audited by a registered statutory auditor. As part of their annual reports and accounts, academy trusts must also publish details of their objectives, achievements, and future plans, including what they have done to promote value for money in support of these projects. The department publishes data on academy finances on GOV.UK, as part of the Academies Sector Annual Report and Accounts and as part of the Financial Benchmarking and Insights Tool.

Where non-compliance or governance concerns are identified, the department will intervene in a way that is proportionate to the risk and preserves education provision. This can include issuing a trust with a Notice to Improve (NtI). Less than 1% of academy trusts are subject to an active NtI. In cases of financial or financial governance failure, NtIs issued to academy trusts and Investigation Reports are published on GOV.UK.