Academy Trust Handbook 2022 (also known as the Academies Financial Handbook)

Academy Trust Handbook 2022
(also known as the Academies Financial Handbook)

Effective from 1 September 2022

The Education and Skills Funding Agency recently updated the handbook that describes financial requirements for academy trusts.

The Academies Financial Handbook sets out the financial management, control and reporting requirements that apply to all academy trusts. It describes a financial framework for trusts that focuses on principles rather than detailed guidance and reflects their accountability to Parliament and to the public.

Compliance with the handbook is a condition of each trust’s funding agreement.

The 2022 edition of the handbook is effective from 1 September 2022. 

The main changes are as follows:

Financial Reporting:
Confirming withdrawal of the Budget Forecast Return Outturn [paragraph 2.15].

Special Payments:
Clarifying in paragraph 5.12 that prior approval of staff severance payments in accordance with HM Treasury’s Guidance on Public Sector Exit Payments applies only to ‘special’ (non-statutory/non-contractual) payments.

Indemnities:
Confirming that trusts will be able to enter into indemnities which are in the normal course of business without seeking approval [paragraph 5.19].

Religious Character:

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Extending the scope of paragraph 5.57 from dioceses to all religious authorities, confirming when the ‘at cost’ requirement is met.