Academy Briefing for Church of England Schools in Gloucester Diocese Children & Young People’s Department.

Academy Briefing for

Church of England Schools in

Gloucester Diocese

Children & Young People’s Department

Academies

Academies are publicly funded independent state schools.Funding comes directly from central government rather than via the Local Authority.Members of the Academy are directly accountable to the Secretary of State for the academy’s performanceThe Governing Body decides whether to apply to convert to an academy (however, for schools deemed to be ‘failing’, the Secretary of State can insist on an ‘Academy Order). For CE schools, the Diocesan Board must approve academy conversion.Conversion to academy status is irreversible.

Local Authority and Diocese

Governing Body

Head Teacher

Secretary of State

SIASOfsted

Department for Education National Society

Academy Trust

Governing Body

Head Teacher

Secretary of State

Company Law Charity Law

Land & Buildings

Finance

Employment

Standards

Differences from other schools

FreedomsGovernanceAccountabilityFunding

....and what stays the same

Laws on admissions, exclusions and SEN

Partnership and collaboration

InspectionNot for profit

What’s different about Academies?

Academies have freedom from Local Authority ‘control’.to adapt or vary the National Curriculum.to vary pay and conditions for staff.to change length/timing of school day/term/year.to choose their provider across a wider range of services.

Freedoms: Facts

Schools are already largely self-managing.Academies must still comply with the law on admissions, SEN and exclusions.Converting schools are normally expected to partner a less successful school.

Freedoms: Issues

Academies are companies limited by guarantee and are charitable trusts.Members of the company are guarantors not shareholders.Governors are directors of the company and trustees of the charity.The academy company is the admissions authority, employs school staff and owns the premises.The academy company is accountable for standards and attainment.

Governance: Facts

The Academy CompanyMembers

Governorswho become

Company Directorsand Charity Trustees

Governing Bodies may be smaller with fewer elected parents or staff reps.Members may appoint governors to maintain majority.Levels of delegation to governors from members may vary.Academy members’ liability is up to £10 per head.The Trust must ensure that Governors’ (as Directors) have indemnity insurance to ensure they are fully protected.

Governance: Issues

Academies are independent of Local Authority ‘control’.They are ultimately responsible to the Secretary of State and the Education Funding Agency.Funding agreement sets out obligations.They are still subject to primary legislation covering e.g. employment, health & safety and equalities.

Accountability: Facts

Schools are already largely autonomous; the LA does not exert operational control over day to day running.An academy will have fewer links with the local democratic decision making process.Reduced support from LA if problems occur: may be purchased but may no longer be available.

Accountability: Issues

Curriculum: Facts and Issues

FactAcademy must

provide a ‘broad and balanced’ curriculum but can vary or adapt the National Curriculum.

IssueHow to maintain

continuity from phase to phase of schooling.

Staffing: Facts

On conversion staff will TUPE on current terms and conditions.Academies can later choose to change contracts and set own pay structures.Increased employers’ contribution for non-teaching pensions.Must offer access to national pension schemes to staff.

Each school establishes own arrangements for salary negotiation.Newly appointed staff are not automatically employed on national pay and conditions.Academy must manage staff response to any proposed changes in pay and conditions.

Staffing: Issues

Premises: Facts

Academy has a Supplementary Agreement with the trustees and they manage the premises.CE Schools converting need a “licence to occupy” their buildings.VA schools converting will no longer have to find 10% contribution to capital projects.

Premises: Issues

No automatic access to LA expertise and support in event of problems or critical events.May have to use contractors with no detailed knowledge of buildings.Academies assume responsibility and liability for day to day management of premises including H&S and asbestos.No guarantee of capital levels in future: current applications very oversubscribed.

Becoming an academy “should not bring about a financial advantage or disadvantage to a school” (DfE).However, academies have greater freedoms on how they use their budgets. This is specifically in relation to the LACSEG funding they receive to meet additional responsibilities that are no longer provided for them by the Local Authority.

The Principle of Funding

How Funding is Calculated

The funding for academies comes from the DfE (via the Education Funding Agency (EFA)) in the form of a grant - the General Annual Grant (GAG).This is calculated and paid over the academic year rather than the financial year.It consists of two partsan amount equivalent to the school’s current delegated budget share (by far the largest part of the GAG).additional money (known as LACSEG) to cover those central services the Local Authority no longer provides.

Local Authority Central Spend Equivalent Grant

(LACSEG)This is the additional money an academy receives to cover those services no longer provided by the LA.It varies considerably from LA to LA, depending on how much each LA holds back to pay for central services.The grant is calculated by the EFA, and has two elements:a flat rate per pupil on roll.an additional amount based on the number of SEN pupils on either school action or school action plus.LACSEG is not based on the actual costs of the services currently supplied to an individual school.

New Responsibilities

Schools already pay for a range of services out of their delegated budget. Academies receive funding (through the LACSEG) for extra responsibilities, hitherto covered by the LA.

SEN support services. Behaviour support services. 14-16 practical learning options. School meals and milk. Assessment of FSM eligibility. Repair and maintenance of kitchens. Museum and library services. Licences and subscriptions. Central staff costs (maternity, long term

sickness and trade union duties). Costs of certain employment terminations.

Services and costs currently funded from a local

authority’s schools budget

Costs of LA statutory/regulatory duties.Asset management costs.School improvement services.Monitoring national curriculum assessments.Education welfare services.Pupils’ support (e.g. clothing grants).Music services.Visual and performing arts services.Outdoor education services.Certain redundancy and early retirement costs.

Services and costs funded from other local authority

sources

The LA retains funding for some statutory services that it has to continue to provide.These are:home to school transport;educational psychology;SEN assessment and statementing;monitoring of SEN provision etc.;prosecution of parents for non-attendance;some individually assigned SEN resources;provision (through a PRU or education otherwise) for a pupil no longer registered at an academy.

Local Authority Retained Funding

Deficits and Surpluses

Deficits and surpluses transfer with the school on conversion.If an academy opens with a deficit then the EFA would repay the Local Authority.The academy would then be required to agree with the EFA a plan to repay it from GAG instalments.Academies are not allowed to run a deficit without remedial action.

A school in the process of converting receives a one-off grant of £25K.This is intended to cover the legal costs incurred by both the school and the Diocese, and the accountancy and project management costs incurred by the school.

One–off Costs of Conversion

Academy Funding in the Future

The government’s view is that the current system of school funding is too complex and unfair. In addition, as more schools convert to academies, a system of funding based on a local authority driven formula becomes unsustainable.The government has consulted on proposals for a new school funding formula.The new formula would be used to calculate the budgets for academies in the area.

Academy Trust

Governing Body

Head Teacher

Secretary of State Secretary of State

Academy Trust

Governing Body Governing Body Governing Body

Head Teacher Head Teacher

Diocesan Umbrella Trust

I have come that they may have life in all its fullness.

John 10

Academy Briefing for

Church of England Schools in

Gloucester Diocese

Children & Young People’s Department